Optimism about Iran's entry into crude oil markets gathers momentum!
The relatively
optimistic – and less confrontational - atmosphere at the talks involving the
signatories to the JCPOA, 2015 Iran nuclear deal, have made analysts taking an intense
interest in the development – once again.
Last week,
against all odds, Amir Abdollahian, the Iranian Foreign Minister, said that Iran
was in a hurry to revive the JCPOA, which in turn made the talks a focus that
is worthy of attention.
A few days
later, he even went further by saying that Iran was prepared for a prisoner
swap with the US, saying it was a humanitarian issue that got nothing to do
with the ongoing nuclear negotiations.
The palpable
optimism about the revival of the JCPOA got yet another boost this week when Ayatollah
Ali Khamenei, the Iranian Supreme Leader, said that Iran never wanted to make
nuclear weapons; he made it clear Iran’s nuclear programme is for peaceful
needs.
The direct
intervention, none other than the spiritual head, carries a lot of weight in
convincing a significant audience who naturally suspect the Iranian motives,
especially in the West.
This is the
first time that Iranian leader came out in no uncertain terms to clarify
Iranian position regarding its nuclear programme. Iranian media, meanwhile, is
upbeat about the prospect of reviving the deal in light of the latest developments,
highlighting the positive impact on the Iranian economy.
It is clear
the negotiations started rolling, having shifted the obstacles, boosted by backdoor
negotiations at many different levels.
Of course,
Iran needs cash to revive many vital sectors of its ailing economy. It may have
felt that there would never be a better time to cash in on oil prices that the
present time.
The Sunni Arab nations in the region,
meanwhile, are forming cohesive fronts in order to tackle emerging economic challenges,
while taking Israel on board. Turkey’s desire to come under a common umbrella
is a case in point.
In these
circumstances, Iran may have felt it being at an acute disadvantage by choosing
to exist in isolation while funding some Shia military organisations in the
region.
Iran’s
potential entry into the crude oil markets is no longer distant possibility.
That’s why both the investors and traders keenly watch the political
developments to gauge direction in which the winds of change head.
