Wednesday, July 15, 2015

The Iranian nuclear deal

Against all odds we seem to have a proposed deal with Iran to limit their nuclear ambitions. Since any deal would have had to have the (probably grudging) approval of Iran’s supreme leader, Ali Khamenei, it probably means that Iran’s hard liners won’t be able to kill it. And while Republicans seem to be lining up to oppose the deal, I assume President Obama can corral enough Democrats to (probably reluctantly) uphold any veto.  So no doubt we will end up with this deal.

It certainly isn’t a good deal, because it leaves most of Iran’s nuclear facilities intact, except for disabling their heavy water reactor at Arak that could have been used to produce plutonium for weapons.  But it may be an adequate deal if (and only if):

1. the Iranians allow the IAEA inspection system to work as it should, and

2. the Western powers have the political will to put sanctions back into effect if Iran violates the terms of the agreement.

I doubt that this agreement will lead to any early thaw between Iran and the Western powers.  Indeed, Khameni may feel it necessary to let his hard liners have victories in other areas to sooth their opposition to this deal. And no doubt much of the flood of new money from unfrozen Iranian assets and new Iranian oil sales will be used to stir up more trouble elsewhere in the Middle East. 

On the other hand, the flood of new Iranian oil on the market will probably depress the price of oil yet more, and cause Russia’s President Putin more headaches. 

Only time will tell whether this was a naive effort, or a worthwhile diplomatic victory. It's too early yet to judge.