Iran, global powers reach nuclear breakthrough

OREANDA-NEWS. April 03, 2015. Iran reached a historic tentative breakthrough with the US and other global powers today which would limit Tehran's nuclear activities in exchange for an easing of sanctions that have severely curtailed exports from Opec's third-largest producer.

In what could prove a watershed moment in relations between Iran and the international community, the negotiators unveiled an interim framework for a final deal under which the US and EU would suspend nuclear-related economic and financial sanctions.

"We have taken a decisive step," EU high representative for foreign affairs Federica Mogherini said, reading from the text of the agreement. Mogherini was joined onstage in Lausanne, Switzerland, by Iranian foreign minister Mohammad Javad Zarif, who read the same text in Farsi.

The agreement between Iran and the P5 + 1 negotiation partners – the US, UK, France, Russia, China and Germany - will serve as a framework to achieve a comprehensive accord by 30 June. The parties will now begin drafting the text of that final agreement.

US President Barack Obama said the deal was historic and "if fully implemented will prevent [Iran] from obtaining a nuclear weapon."

"This deal is not based on trust. It's based on unprecedented verification," Obama said in address from the White House's Rose Garden.

The US and EU sanctions will be suspended after UN nuclear watchdog the IAEA has verified that Iran taken all of its key nuclear-related steps promised. If Iran fails to fulfill its commitments, the sanctions will come back into force.

The sanctions relief will be phased in "as Iran takes steps to adhere to the deal," Obama said. "If Iran violates the deal, sanctions can be snapped back into place."

Iranian president Hassan Rohani tweeted that "solutions on key parameters of Iran nuclear case" have been reached with "drafting to start immediately" and finish by 30 June.

During the nuclear negotiations, Iran's oil exports have been limited to about 1.1mn b/d, not including condensate. That is less than half the 2.5mn b/d Iran was exporting in 2012. Iran's oil output was 2.9mn b/d, up from 2.85mn b/d in January.

Oil minister Bijan Namdar Zanganeh has insisted that Iran can swiftly lift exports by 1mn b/d if US and the EU lift sanctions. Within two months of that point, Iran can restore production to 3.8mn b/d, Zanganeh told Argus in November.

The Senate Foreign Relations Committee is scheduled on 14 April to take up legislation that would enable Congress to review any deal before President Barack Obama could suspend or waive any congressionally-mandated sanctions. While Obama has threatened to veto any such legislation, proponents of new sanctions may be able to collect enough votes to override a presidential veto.