Diplomacy and International Politics

The agreement to freeze production was geopolitical not economic, writes Meghan O’Sullivan in the Financial Times.

On June 23 and 24, twenty five experts met at Harvard University’s Kennedy School of Government under the auspices of the Geopolitics of Energy Project at the Belfer Center for Science and International Affairs. The group, which included experts from academia, the financial sector, government, and the energy industry, spent an evening and the following full day discussing and debating the possible energy implications of a nuclear deal between the P5+1 and Iran.

To assist Members of Congress and observers in analyzing these issues and judging a potential comprehensive agreement, the Belfer Center prepared this brief to outline the key facets of sanctions against Iran. Written as an addendum to our April policy brief, ‘Decoding the Iran Nuclear Deal,’ this report is driven by the policy debate’s leading questions.

On April 2, 2015, the E.U. (speaking on behalf of the P5+1 countries) and Iran announced agreement on “key parameters” for a comprehensive agreement on Iran’s nuclear program. The E.U.-Iran Joint Statement is buttressed by unilateral facts sheets issued by the U.S. and Iran, which provide further details of the framework accord. Negotiators now turn to translating this framework accord into a final comprehensive agreement by June 30, 2015. Members of Congress and their staffs, as well as informed citizens, are now focusing on the Iranian challenge and assessing the framework accord. The Belfer Center for Science and International Affairs at the Harvard Kennedy School has prepared this Policy Brief summarizing key facts, core concepts, and major arguments for and against the current deal aimed at stopping Iran from developing nuclear weapons. The purpose of this Policy Brief is not to advocate support for or opposition to the tentative deal that has been negotiated, but rather to provide an objective, nonpartisan summary to inform Members and others in coming to their own conclusions. The team of experts who prepared this report includes Democrats, Republicans, Independents, and internationals, who have many disagreements among themselves but who agree that this Brief presents the essentials objectively.

With a few exceptions, the consensus emerging from last week’s inconclusive Organization of Petroleum Exporting Countries meeting is that if OPEC is not dead, it is at least in a coma.  This may be a reasonable judgment based on the group’s ability to take collective action on a production cut to bolster the price of oil in the short run. 

Fears that events in Iraq will send global oil prices soaring have abated. Yet, the crisis has potentially huge implications for oil. Under any conceivable outcome to the current situation, oil production from Iraq will fail to meet recent expectations. The reason for this dire prognosis is that politics – not security or logistics – will be the biggest determinant of Iraq’s oil trajectory in the years ahead.

The Summer 2011 issue of the Belfer Center newsletter features analysis and advice by Belfer Center scholars regarding the historic upheavals in the Middle East and the disastrous consequences of the earthquake and tsunami in Japan. The Center’s new Geopolitics of Energy project is also highlighted, along with efforts by the Project on Managing the Atom to strengthen nuclear export rules.