What is the tension between the U.S. and the Iran in relation with nuclear use? Assess the economic consequences at the global level resulted by these differences.
Refer - The Hindu
Enrich the answer with other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
Tension between Iran and USA
· Iran’s announcement that it had breached the limit of the 300 kg of enriched uranium stockpile that was allowed by the JCPOA. It appears Iran’s patience is wearing out.
· 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.
· The mayhem could have spread to the entire West Asian region with Iran attacking strategic American, Saudi and Emirati targets around the Gulf and attempting to block the Strait of Hormuz in an effort to choke off the supply of Gulf oil to the international market.
· Further, Iranian allies in Lebanon, Iraq and Syria might have launched attacks against American troop concentrations as well as against U.S. ally Israel, thus inviting further American and Israeli counter-retaliation and dragging the U.S. into its third major war in the region.
· The downward spiral in U.S.-Iran relations started with Mr. Trump’s decision (announced in May 2018) to withdraw from the JCPOA against the advice of the U.S.’s European allies France, Germany, and the U.K. that are parties to the deal.
· The US administration followed it up with the re-imposition of stringent economic sanctions against Iran that were being gradually dismantled following the 2015 nuclear deal. These included sanctions against foreign companies doing business with Iran and against countries buying Iranian oil.
Economic consequences
· Fluctuation in oil prices at the international due blockage in Strait of Hormuz.
· This leads to gradual slow down in global growth rate, and affects the trade interest of other countries due to process of globalization.
· Subsequently this raises the problem of protectionism by different nations causing the instability in co-operation of nations at various levels.
· For India, economic sanctions of USA on Iran, withdewal of Global system of preferences increase the component of imports and affects exports causing trade deficits.
· Peace process like Raisinia dialogue, heart of conference will get impacted due to tensions between Iran and USA.
Aarthi 5 years
Hi,
Please review.
IAS Parliament 5 years
Good answer. Keep writing.
Shivang Sharma 5 years
Review thanks
IAS Parliament 5 years
Good attempt. Keep writing.
Akash Choudhary 5 years
Please review and thanks.
IAS Parliament 5 years
Good answer. Keep writing.
sarvan kumar 5 years
evaluate please
IAS Parliament 5 years
Good answer. Keep writing.
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