Why in News?

• Tensions between US and Iran has reduced after US has backed away from further conflict with Iran.

About:

• The United States and Iran have a long history of tensions, but the latest escalation started when an American drone strike killed top Iranian general Qassem Soleimani recently.
• The roots of the latest Iran-US crisis go back to 2018, when US President Donald Trump walked away from the Iranian nuclear deal, one of the signature achievements of his predecessor Barack Obama, and reimposed harsh sanctions on the country.

About Iran Nuclear Deal:

• Iran agreed to rein in its nuclear programme in a 2015 deal struck with the US, UK, Russia, China, France and Germany (P5+1 countries).
• Under the Joint Comprehensive Plan of Action (JCPoA)Tehran agreed to significantly cut its stores of centrifuges, enriched uranium and heavy-water, all key components for nuclear weapons.

Why did Iran Agreed to the deal?

• It had been hit with devastating economic sanctions by the United Nations, United States and the European Union.
• Billions in overseas assets had also been frozen.

Why has US pulled out of the Deal?

• Trump and opponents to the deal say it is flawed because it gives Iran access to billions of dollars but does not address Iran’s support for groups like Hamas and Hezbollah which the U.S. considers as terrorists.
• It also doesn’t curb Iran’s development of ballistic missiles and that the deal phases out by 2030.

What are the Implications of US sanctions on Iran?

• Other countries have promised to uphold it, but their ability to do so will depend on how their companies can be firewalled from U.S. sanctions if they continue their engagement with Iran.
• The sanctions often referred to as “secondary sanctions”, which primarily target non-US companies engaging in business in or with Iran entirely outside US jurisdiction.

What is its Significance?

• The Iran deal, despite its shortcomings, was a shining example of the capacity of world powers to come together and sort out a complex issue diplomatically.
• It assumed greater significance given the recent wars and chaos in West Asia.
• It should have set a model in addressing other nuclear crises.
• Iran deal, and other diplomatic achievements, is necessary to convince countries like North Korea, that it is possible to create security without acquiring nuclear weapons.
• The deal is important in ensuring the international nuclear non-proliferation regime and regional peace and stability.

What is its Impact on India?

• India and Iran relations are on downward trend in recent times.
• Oil supplies are reduced to India and Iran is not in favour of allotting gas fields to India in recent times. Mostly India’s relations with the US might be the reason for this.
• But India is in a better position having been forced to diversify its crude supplying base.
• It may impact on Chabahar port project if US impose more sanctions on Iran.
• It will impact India’s balance in the complex West Asia region.