US President Donald Trump on Tuesday scrapped the Iran nuclear deal signed by Barack Obama and , five other international powers including China and Russia which eased sanctions on Iran in exchange for Tehran limiting its nuclear program. The decision has initiated a process that will, in months to come, will re-imposed the US sanctions on Teheran.
“I am announcing today that the United States will withdraw from the Iran nuclear deal,” Trump said in a televised address from the White House. “This was a horrible one-sided deal that should have never, ever been made,” Trump said at the White House. “It didn’t bring calm. It didn’t bring peace. And it never will.” the agreement had not prevented it from its quest for nuclear weapons.
The decision is already disrupting global oil supplies and is being viewed as the latest chapter in Saudi-Iran rivalry. Also, Euro American relations seem unavoidable to be hampered. Trump’s move is a snub to European allies such as France, Britain and Germany were are also part of the Iran deal and tried hard to convince the U.S. president to preserve it.
After Trump’s announcement on Tuesday, Macron tweeted that France, Germany, and the U.K. regretted the United States’ decision but would work “collectively on a broader framework, covering nuclear activity, the post-2025 period, ballistic activity and stability in the Middle-East, notably Syria, Yemen and Iraq.”
`From the Indian perspective, the 2015 JCPOA deal with Iran was a boost to its long term diplomatic efforts. While the agreement ended Tehran’s economic isolation from the rest of the world, New Delhi saw this as an opportunity to open trade routes to Central Asia and expand its ties with Afghanistan.
The half a billion-dollar Indian project to develop the strategically located Iranian port of Chabahar, is too important for Indian strategic interests to be sacrificed for Washington’s tantrums.
This strategically located port which is only 85km from China’s Gwadar port in Pakistan, is important for India as it will allow it to bypass Pakistan in accessing Afghanistan and Central Asia. The Chabahar port will not only cut transport costs but also reduce the travel time for Indian goods and ramp up trade among India, Afghanistan, Central Asian republics and Iran.
Furthermore, fresh US sanctions on Iran are already helping the oil prices skyrocketing. While the Indian and Chinese economies absorb this increased cost, ironically the US actions helps the coffers of Iran and Russians. The World Bank has already projected a 20% jump in global prices of crude oil, gas and coal, this year. All of this will in turn pressure the rupee, push inflation higher and send GDP lower.
The chaotic Trumplomacy has already hit India hopefully the leadership in New Delhi will take actions to preserve its interests.