Nuclear Issues

Last May, Chinese solar panel manufacturer LONGi signed an agreement with Saudi trading company El Seif Group to establish large-scale solar manufacturing infrastructure in Saudi Arabia. The deal came several months after the Trump administration's imposition of global tariffs on imports of Chinese solar panels and cells.

If the intended aim of the new round of U.S. sanctions were to change Iran’s behavior, it already has. Just not the behavior the Trump team had in mind—Iran abandoning its pursuit of pro-market economic reforms. President Hassan Rouhani, who was elected twice, in 2013 and 2017, on a platform of liberal economic reforms, has piece by piece put aside his reform agenda. Because of the economic havoc wreaked by the re-imposition of U.S. sanctions, he finds himself in the odd position of overseeing price controls, punishing commodity hoarders, subsidizing imports of a variety of goods, including mobile phones, and has lost the most liberal members of his economic team

After a tumultuous week of unpredictable twists and turns during President Donald Trump’s visit to Europe, anxiety levels have risen among experts and policy makers about the coming summit between Trump and President Vladimir Putin. As President Trump himself has noted, there is no shortage of issues demanding the attention of the two leaders: Syria, Iran, arms control and — who knows — maybe even Russia’s interference in America’s elections. But energy could snake its way onto the agenda, and Trump needs to be careful not to give Putin concessions in exchange for something the Russian president already plans on doing.

Oil markets have so far reacted to President Donald Trump’s decision to withdraw from the 2015 Iran nuclear deal without either enthusiasm or panic — without even much apparent interest. There are many good reasons for this, but also many reasons to think oil markets’ complacency could change. Fortunately, the Obama-era sanctions that Trump has moved to reimpose have some lesser-known safety valves should oil markets later overheat as a result of the Iran decision.

President Donald J. Trump’s tweet this weekend that the U.S. might terminate all trade with countries doing business with North Korea was widely derided on the grounds of realism. Given that 90 percent of North Korea’s trade is with China, the tweet was little more than a veiled threat to terminate all U.S. trade with Beijing, ending a bilateral trade relationship valued at $650 billion a year. It would, as many correctly pointed out, mean economic disaster for North Korea -- and also for the U.S.

Aaron Arnold, Associate with the Project on Managing the Atom at the Belfer Center, and Nikos Passas, Professor of Criminal Justice at Northeastern University, argue in The Conversation that Iran's reintegration into the global financial system may in fact make it easier, not more difficult, to monitor Iranian financial activities for illicit transactions. They point to the fact that banks can monitor transactions for entities designated as involved in terrorist or weapons of mass destruction activities by the U.S. Treasury. They also suggest that Iran may adopt stricter money laundering standards in order to increase economic integration. While challenges remain, they suggest that building a public-private partnership between banks and regulators will ensure that Iran will be caught in any illicit financial actions after the nuclear deal.