After many months of wrangling and virulent opposition on both sides, the US and Iran have finally sealed an historic agreement over the Middle Eastern country’s nuclear ambitions. The closest the two countries have got to cordial relations since the Islamic Revolution 36 years ago, the deal represents an historic moment for the region, and could shake up the geopolitical landscape.
[Iran] currently has around $150bn in frozen international assets
However, while the political implications of the deal are likely to be wide reaching, the world’s business community is eagerly anticipating the lifting of sanctions and ability to enter a potentially vast, untapped market. A number of energy companies – including Royal Dutch Shell and Glencore – are reported to have already made plans for their Iranian operations once sanctions are lifted. Other major firms from a range of sectors also see Iran as a big opportunity, including Apple and General Electric, which has reportedly contacted potential Iranian distributors in recent months, according to The Wall Street Journal.
The FT reports that Germany’s vice-chancellor Sigmar Gabriel is expected to take a delegation of trade executives to Iran within the next few days in the hope that a deal over updating the country’s out-dated oil industry infrastructure can be secured for German companies. It is thought such a deal could be worth as much as €10bn.
The conditions of the sanctions being lifted are that Iran provides evidence it is reducing its number of centrifuges and uranium stockpiles. It is thought that this will likely come at the start of 2016, meaning businesses have a little while longer to wait before they can start trading in the country.
While the deal between Iran and the West is merely a first step towards a thawing of relations, the country’s vast potential is clear. It currently has around $150bn in frozen international assets, while has huge deposits of oil and gas that it has been restricted in selling overseas. For international businesses, helping to facilitate the economic growth of the country is proving particularly exciting.
