President Trump has been a long time critic of the Iran Nuclear deal, and on May 8, 2018 he vowed to remove the United States from the deal. In turn, economic sanctions that previously crippled Iran’s economy will be re-applied.
Trump went on record during his White House address saying “This was a horrible, one-sided deal that should have never ever been made.” He furthered this idea by stating that we now have proof of Iran’s malintentions to transform their nuclear program into something malignant.
The proof being referenced in this address is a set of Iranian nuclear plans that were stolen during a secret raid in January, according to the New York Times. Although, the Israeli Prime Minister, Mr. Netanyahu could not prove that these plans weren’t from before the deal took effect in 2016, the information is inspiring widespread scepticism.
Another issue that is brought to question is the history of Mr. Netanyahu’s opinion on the Nuclear Deal. He has been opposed to the deal since its inception and this information could be representative of that.
Another key reason that Trump is opposed to this deal is that he says it “would allow Iran to continue enriching uranium and over time reach the brink of a nuclear breakout.” The only issue with this statement is that since the inception of the deal, Iran’s Uranium stockpile has been reduced by 98% and they are not allowed to enrich their remaining Uranium beyond 3.67%, according to the BBC.
Furthermore the amount of centrifuges that are still available has been reduced by roughly 75%. There were initially almost 20,000 centrifuges, and today there are just over 5,000 of the oldest and least efficient centrifuges left.
Initially the motivation behind this deal was to make the world safer and prevent Iran from acquiring nuclear weapons, but Iran’s economy was completely crippled under heavy economic sanctions. Because businesses in other countries were not allowed to buy Iran’s oil or sell goods to Iran there GDP was virtually non-existent as Iran is the fifth largest oil reserve in the world.
Moreover, the sanctions have been lifted Iran has been selling oil to the rest of the world. Trump in a white house memo said that the rest of world’s oil supply is sufficient enough to support the dropping Iran from the list of the world’s major suppliers. However, according to the Dow Jones crude oil barrels have reached multi-year highs of $78 a barrel after the decisions last week was made to drop the nuclear deal.
Other complications due to the withdrawal of the U.S. from the Nuclear deal are affecting other areas of big business as well.
After sanctions were lifted in 2016, companies like Boeing engaged in business deals with Iran’s airline companies for upwards of $20 billion dollars. These deals that have not seen product delivery yet are being killed because of the sanctions re-application
Nuclear Deal Details
Trump Leaves nuclear deal