Burst! Irans announcement of withdrawal of Irans nuclear agreement promises a sharp drop in the Gulf stock market

category:Finance
 Burst! Irans announcement of withdrawal of Irans nuclear agreement promises a sharp drop in the Gulf stock market


Screenshot of Al Jazeera news

On May 8, 2018, President trump of the United States announced that the United States would withdraw from the Iran nuclear agreement and restart the sanctions exempted from the Iran nuclear agreement.

A year later, on the same day, Iranian President Hassan Rouhani announced that Iran had suspended part of its nuclear agreement and would no longer sell heavy water and enriched uranium to the outside world. But at that time, Iran did not completely withdraw from the Iranian nuclear agreement, and under the mediation of the European Union and the United Nations and other parties, the Iranian nuclear agreement was not completely broken.

Rouhani attends press conference (photo source: Wikicommons)

However, the fragile balance that has been maintained by various efforts has been broken with the deadly U.S. raid on Sulaimani, Irans No.2 figure.

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Iran withdraws its commitment to the nuclear agreement

According to the global times associated press, Bloomberg and other media reports, on January 5, Beijing time, Abbas Mousavi, spokesman of Irans foreign ministry, said at a press conference that the countrys officials planned to meet on Sunday evening to discuss the next step of their withdrawal from the nuclear agreement. The scale of the action will be larger than originally planned.

According to the previous Afp report, Iran will finalize the next step in the evening of the 5th.

Iran will end its commitments under the Iran nuclear agreement and lift any restrictions on the nuclear industry, including the number of centrifuges, Irans Supreme National Security Council said in a statement. As a result, Iran will no longer be subject to any restrictions on its uranium enrichment capacity, the abundance and quantity of enriched uranium and the depth and breadth of research.

It has been noted that under the 2015 Iran nuclear agreement, the enrichment of enriched uranium refined by Iran should not exceed 3.67%, and Iran can only store up to 300 kg of enriched uranium.

According to the New York Times, the abundance level of 3.67% is sufficient for nuclear power, but far lower than the 90% enrichment required for nuclear weapons. However, experts also say that once the enrichment of uranium exceeds 20%, it will not be difficult to reach 90%.

Irans Arak heavy water reactor (photo: Wikicommons)

In 2019, Iranian President Mahmoud Rouhani said that Iran is ready to increase any amount of enriched uranium to a level of more than 3.67%. Rouhani also promised to resume construction of the Arak heavy water reactor, although Iran agreed to close the project when the 2015 nuclear deal was signed.

Event review: the United States and Iran successively withdrew from the agreement

In July 2015, Iran and the United States, Britain, France, Russia, China and Germany reached a comprehensive agreement on the Iranian nuclear issue, the joint comprehensive action plan. Under the agreement, Iran promised to limit its nuclear program, while the international community would lift sanctions against Iran.

However, in May 2018, the United States unilaterally withdrew from the agreement and then re imposed sanctions on Iran. In May 2019, Iran announced to suspend the implementation of some provisions of the Iran nuclear agreement. Relations between the United States and Iran deteriorated seriously, and the situation in the Gulf continued to tense.

On May 8, 2018, trump said in a televised speech at the White House that the Iran nuclear agreement is a bad agreement, with very weak restrictions on Irans development of nuclear projects, but Iran has been exempted from sanctions. He said the agreement does not limit Irans development of ballistic missile projects, and the sunset clause in the agreement that Iran can resume uranium enrichment activities after the expiration of the agreement is unacceptable.

Trump said the United States has decisive evidence that Irans commitment to the Iranian nuclear issue is a lie. After the speech, trump signed a document on the withdrawal of the United States from the Iran nuclear agreement.

On May 8, 2019, Iranian President Mahmoud Rouhani delivered a televised speech, announcing that Iran has suspended part of the terms of the Iranian nuclear agreement and will no longer sell heavy water and enriched uranium to the outside world.

In his speech, Rouhani stressed that this does not mean that Iran withdraws from the Iranian nuclear agreement. Iran hopes to negotiate with other signatories of the Iranian nuclear agreement on Irans rights and interests in the agreement within 60 days. If the demands are not met, Iran will no longer limit the product abundance of its uranium enrichment activities.

Iran heavy water plant (photo source: Wikicommons)

However, Iranian foreign minister Zarif stressed on the same day that according to Article 26 and Article 36 of the Iranian nuclear agreement, Iran has the right to adjust its implementation of the agreement according to the performance of other signatories. According to Articles 26 and 36 of the text of the Iran nuclear agreement, if the sanctions suspended in accordance with the agreement are restarted, Iran will be deemed as the reason for stopping the implementation of the agreement commitments in whole or in part. If there is any dispute on the implementation of the agreement, it will be submitted to the multilateral dispute settlement mechanism.

In June 2019, the International Atomic Energy Agency reported that Irans stockpile of enriched uranium had exceeded the agreements 300 kg weight limit.

Gulf index down

Saudi Aramco, the worlds biggest oil giant by IPO last month, fell 1.7% to 34.55 Riyals, the lowest level since trading began on December 11.

The war between the United States and Iran may reduce global GDP by 0.5 percentage points or more, mainly due to the collapse of the Iranian economy and the impact of rising rock prices. Capital Economics analyzed in a research paper last week.

On January 3, US oil closed at US $63.05 a barrel, while oil distribution closed at US $68.60 a barrel, the highest level in more than three months, after the death in Sulaimani triggered concerns that the US Iraq conflict could damage global oil supply.

EU and UN fully safeguard Iran nuclear agreement

On July 15, 2019, EU foreign ministers gathered in Brussels to hold urgent consultations on how to save the Iranian nuclear agreement. The resolution issued after the meeting said that the international community could not hastily restart the sanctions against Iraq, resulting in the risk of collapse of the hard won Iran nuclear agreement.

It was also noted that Juncker, chairman of the European Commission, had said that the United States no longer wanted to cooperate with other countries, which indicated that the United States, as a member of the international community, had lost its vitality and would lose its influence for a long time. French, German and British leaders have also jointly expressed regret over Trumps decision to withdraw from the Iran nuclear agreement.

On December 19, 2019, U.N. Under Secretary General DiCarlo said at the Security Council meeting that both the United States and Iran are undermining the Iranian nuclear agreement, which is the cornerstone of international peace.

DiCarlo said that the comprehensive and effective implementation of Irans nuclear agreement is the key to ensuring the peaceful nature of Irans nuclear program and ensuring the effective economic interests of the Iranian people. She said that the withdrawal of the United States from the agreement and the resumption of sanctions against Iran run counter to the objectives of the agreement, and that it is regrettable that Iran has not fulfilled some of its commitments in the near future.

Russian Foreign Minister: Russia and China stand in complete agreement

According to the Ministry of foreign affairs, on the evening of January 4, 2020, State Councilor and foreign minister Wang Yi and Foreign Minister Sergei Lavrov of Russia telephoned to exchange views and coordinate positions on the current sharp tension in the Gulf and cooperation between the two sides in the UN Security Council.

Wang Yi expressed that China attaches great importance to the intensification of the conflict between the United States and Iran, opposes the abuse of force in international relations, and military risks are unacceptable. China advocates that all parties should earnestly abide by the purposes of the Charter of the United Nations and the basic norms of international relations, that Iraqs sovereign independence and territorial integrity should be respected, and that peace and stability in the Middle East and the Gulf region should be maintained.

Lavrov said that Russia and China stand in complete agreement. US actions are illegal and should be condemned. Russia opposes the gross violation of the sovereignty of other countries, especially the unilateral military action. Russia is willing to work closely with China to play a constructive role in avoiding the escalation of regional tensions.

Foreign Minister Wang Yi: oppose any unilateralism and bullying

According to a reference report, on the last day of 2019, Zarif arrived in Beijing, which is his fourth visit to China in a year. On the day of his arrival in Beijing, State Councilor and foreign minister Wang Yi held talks with him.

In the manuscript on the talks released on the website of the Ministry of foreign affairs, Wang Yi pointed out directly that the United States unilaterally withdrew from the comprehensive agreement on the Iranian nuclear issue, gave up its due international obligations and exerted extreme pressure on Iran, which is the root cause of the current tensions on the Iranian nuclear issue. He also stressed that China supports all constructive efforts to ease current tensions and maintain the comprehensive agreement. He hoped that the participants in the agreement would stick to the right direction, resist external pressure, handle existing differences through dialogue and consultation, and continue to maintain and implement the comprehensive agreement.

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China will firmly safeguard international fairness and justice, oppose any unilateralism and bullying, and promote the political and diplomatic settlement of the Iranian nuclear issue, Wang Yi said

Zarif spoke highly of and thanked China for its important role. He also said that Iran is willing to maintain close communication with China, adhere to multilateralism, oppose unilateralism, earnestly safeguard the comprehensive agreement and safeguard its legitimate rights and interests.

Chinese embassies in the United States and Iraq sent reminders

On January 5, the Chinese Embassy in the United States suggested and reminded Chinese citizens in the United States to pay close attention to the local security situation, increase vigilance, pay attention to security precautions, and carefully consider going to public places. In case of danger or emergency, please call 911 in time. For consular assistance, please call the 24-hour global consular protection and services emergency call center of the Ministry of foreign affairs, or contact the Chinese Embassy and consulate in the United States:

Embassy in the United States: 202-4952216

Consulate General in New York: 212-6953125

Consulate General in Los Angeles: 213-8078052

Consulate General in Houston: 713-5219215

China consular service network reminded on October 30, 2019 that since 2017, the Ministry of foreign affairs and the Chinese Embassy and consulate in Iraq have issued security reminders to stay away from Iraq for many times in accordance with the security situation in Iraq. The latest reminder is valid until November 1, 2019.

According to the local security situation, we hereby issue a new reminder, which is valid until May 1, 2020, as follows:

Recently, the overall security situation in Iraq is still grim, and terrorist attacks and vicious security incidents are frequent in some provinces. The Ministry of foreign affairs and the Chinese Embassy and consulate in Iraq suggest that Chinese citizens and institutions on the ground should strengthen security and emergency preparedness. In case of emergency, please call the police and contact the Chinese Embassy and consulate in Iraq.

In view of the fact that the current situation is likely to bring huge security risks to the parties and make it difficult for the embassy and consulate in Iraq to provide effective assistance, the Ministry of foreign affairs and the embassy and consulate in Iraq remind and hope that Chinese citizens will not go to Iraq in the near future. If the party insists on going, the expenses incurred by providing consular protection and assistance will be borne by the individual. Local police call: 130, emergency call: 105 global consular protection and service emergency hotline of the Ministry of Foreign Affairs (24 hours): + 86-10-12308 or + 86-10-59913991 consular protection and assistance call of Chinese Embassy in Iraq: + 964-7901912315 consular protection and assistance call of Chinese Consulate General in Erbil: + 964-7515477820 source of this article: Daily Economic News Editor: Yang bin_nf4368

In view of the fact that the current situation is likely to bring huge security risks to the parties and make it difficult for the embassy and consulate in Iraq to provide effective assistance, the Ministry of foreign affairs and the embassy and consulate in Iraq remind and hope that Chinese citizens will not go to Iraq in the near future. If the party insists on going, the expenses incurred by providing consular protection and assistance will be borne by the individual.

Local police call: 130, emergency call: 105

Global consular protection and services emergency hotline of the Ministry of Foreign Affairs (24 hours): + 86-10-12308 or + 86-10-59913991

Telephone number of consular protection and assistance of Chinese Embassy in Iraq: + 964-7901912315

Telephone number of consular protection and assistance of Chinese Consulate General in Erbil: + 964-7515477820