The
historic agreement reached between Iran and six world powers on July 14 to
limit Iranian nuclear activity in return for easing international sanctions
portends a new era -- with mixed implications for the rest of the world.
U.S. conservatives have warned that
the deal will "embolden" Iran and pariah states such as North Korea.
The U.S. Congress has 60 days in which to consider the deal, though President
Barack Obama has said he will veto any attempt to block it.
Analysis of the broader impact of the
Iran deal has so far focused mostly on Tehran's relations with the West.
However, the easing of sanctions on Iran will also lead to significant gains
for Asia.
China, in particular, stands to
advance its rapidly growing interests in Iran, while India and Japan will
undoubtedly launch a push to reap their respective benefits. More generally,
Asian economies will stand to gain from increased investment opportunities and
Iran's higher hydrocarbon production.
Ultimately, reduced sanctions will
allow Iran to export more oil and gas. This is important for Asia, which is the
world's largest petroleum-consuming region. China, Japan, India and South Korea
alone account for one fifth of global oil demand. Despite an economic slowdown,
China still remains the second-largest oil consumer in the world after the U.S.
Conversely, as China tries to reduce its greenhouse gas emissions, its demand
for natural gas will also rise. Asian Review Nicholas Borroz
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