Iran announced that it had breached the limits for stockpiling low-enriched uranium set by the 2015 nuclear deal, which was a 300-kg cap.
Later, it also announced that it would breach another crucial term of the deal - the enrichment limit, which was set at 3.67% purity cap.
What is the recent development?
Iran wanted to have talks with U.S. regarding the nuclear deal with the aim of saving it.
But U.S. was not open for talks.
Iran even turned to other signatories to save the deal, but they were feared of the U.S. sanctions on them.
So, with the nuclear deal being a crucial bargaining card with it, Iran decided to use that as a pressure tactic.
It said that from July 7, 2019, it will enrich uranium in any desirable amount it wants.
Why is Iran breaching the terms?
These steps come in the wake of increasing tensions between the U.S. and Iran following the shooting down of an unmanned U.S. drone over the Strait of Hormuz in June, 2019.
The current crisis was set off when U.S.unilaterally pulled out of the nuclear deal in 2018.
U.S. reimposed the sanctions on Iran against foreign companies doing business with Iran and against countries buying Iranian oil.
Over the past year, most foreign companies that had promised investments in Iran pulled out of the country fearing American sanctions.
Iran’s oil exports dropped when countries started cutting back on Iranian imports, including India.
Inflation has soared to 35%, and Rial, the Iranian currency, has fallen by 70% since early 2018.
Given these, Iran decided to confront the U.S. and put pressure on other signatories to take bold steps to save the deal.
In May 2019, Iran gave a 60-day deadline to other signatories to fix the deal and vowed to keep unspent enriched uranium and heavy water with itself.
As the deadline was almost over, Iran has announced that it has breached the uranium stockpile limit and later the enrichment limit too.
What is the U.S.’S reaction?
These steps have angered the U.S., with its President issuing fresh threats.
The U.S. President first ordered a retaliatory strike on Iran and then rescindedit.
Had this strike taken place, it would have become the first act in a major military confrontation between the U.S. and Iran.
Other signatories to the deal have also expressed concern over Iran’s move.
This endangers the very survival of the agreement.
What are the possible implications?
The chaos could have spread to the entire West Asian region with Iran attacking strategic American, Saudi and Emirati targets around the Gulf.
Iran could have blocked the Strait of Hormuz in an effort to choke off the supply of Gulf oil to the international market.
Iranian allies in Lebanon, Iraq and Syria might have launched attacks against American troop concentrations as well as against U.S. ally Israel.
This could have dragged the U.S. into its third major war in the region.
In order to maintain its stand with the populace, Iran could have further heightened the political temperature in the Persian Gulf.
In all, if taken to its logical conclusion, this scenario can turn out to be catastrophic for the entire West Asian region as well as for the international economy.
Oil supplies from the Persian Gulf are likely to be greatly reduced if not totally eliminated sending oil prices sky-rocketing, especially threatening the vulnerable economies of the global South.
It is now for the countries involved to negotiate and find an amicable solution.
Source: The Hindu
Quick Fact
Iran Nuclear Deal
It is also called Joint Comprehensive Plan of Action (JCPOA).
In 2015, Iran agreed a long-term deal on its nuclear programme called JCPOA with a group of world powers known as the P5+1.
P5+1 - the US, UK, France, China, Russia and Germany.
It came after years of tension over Iran's alleged efforts to develop a nuclear weapon.
Under the accord, Iran agreed to limit its sensitive nuclear activities and allow in international inspectors in return for the lifting of crippling economic sanctions.
It is implemented by International Atomic Energy Agency (IAEA).
