Nuclear Issues

The world was in suspense a week ago wondering whether OPEC and non-OPEC producers would put more oil on tightening global markets. Turns out: Yes, they will. But, as the story does not end here, it is worth assessing where we are and how we got here. While the U.S. seems to have gotten what it wanted, it is not all good news.

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.

The historical record does not support the idea that nuclear energy programs increase the odds of proliferation.

Contrary to conventional wisdom, states with nuclear energy programs are not more likely than those without them to seek or acquire nuclear weapons.

"The weakening of the EU's role as an independent and mediatory player in the nuclear talks, however, beyond economic losses, could bring negative strategic and political consequences for the EU's status in the entire Middle East, which could in turn damage the region's interests. The new economic sanctions will preclude the opportunity of investment by the EU in Iran's gas and oil sectors, thus decreasing trade and commerce between the two—a shift of policy that provoked a sharp rise in China's activities in those sectors."

"...[R]ising regional powers such as Turkey and Brazil can fulfill the role of active partners and help bridge the seemingly irreconcilable differences between the two sides; Iran and 5+1. These actors' perspectives on issues such as international peace and security, comprehensive global disarmament and nuclear monopolies have many supporters in the international community, especially among the Non-Aligned Movement's members, who are fed up with duplicity and self-aggrandizing policies of some of the great powers."