Iran is Back in the Economic Map

Iran is now making a comeback into the business and economic side of things as wold powers have lifted business sanctions against the country that has significantly crippled it's economy for years. This is a good sign for global companies which have been barred before to do business in the region as Iranian assets worth billions of dollars have been finally released. Investors from different countries are now being encouraged to invest in Iran.

Furthermore, the Iranian government has made a deal with Airbus and has now ordered 160 European planes which will pave the way for easier influx of investors. I think this is good news for the investors who have long been wanting to open business in the said country. Here's a link to the story:

http://www.reuters.com/article/us-iran-aviation-idUSKCN0V2098

 

And the Tehran Stock Exchange TEDPIX jumped sharply at its Monday opening a few minutes ago. The TSE web site is more active now, including daily summaries listed toward the bottom of the home page.

 

It will be interesting to see how things continue from here. I could understand the sanctions, I really don't see what has changed in the grand scheme of things that resulted in them being lifted. Anyway, good for a lot of companies obviously, more customers and Iran isn't exactly a poor country either. As said in the OP, Airbus will be the first to benefit with a pretty big order.

 

This is indeed a big benefit for Airbus as being the first to have a business deal with Iran after the sanctions were lifted. Their immediate rise in the Stock Exchange is also a good sign of their "new beginning". It really means that the market is positively welcoming back the re-emergence of Iran when it comes to economical status.

 

I'm keeping an eye on noises out of Saudi Arabia. It's clear that their keeness to continue to pump out oil at a level that isn't economically sound is partly an attempt to hurt high-cost producers like the US but also a way in which to hurt Iran. Saudi and Iran are in a tense diplomatic space at the moment, and anything that potentially impacts Iran's newly allowed oil exports would be the plan.

 

The Iranian president is making a tour around Europe right now to try and solidify reinvestments in Iranian oil, energy, and other technology. It's a smart move, not just to do damage control on the effects of war in the region that were not in their favor as much, but to try and reach out to markets that need them and can utilize what they have to help each other.

When you improve your diplomatic relations with other countries, usually your economical situation improves with them as the result shortly after. The sanctions previously imposed seem to be more based on political disagreements rather than anything else, so it looks like they are trying their best on every side to resolve those to seize the opportunity in front of them while it lasts.

 

UN inspectors have 100% access to any facility they want to inspect with less than 48 hour notification. From a logistical standpoint, as well as just a chemical standpoint, it is now impossible for Iran to hide nuclear weapon research. They simply would never be able to move the equipment or eliminate the chemical traces fast enough.

The UN inspectors also know the whereabouts of nearly any significant scientist who would be working on anything illegal, so would quickly know what facilities to inspect.

Denying access to inspectors, or impeding their inspections results in instant re-application of sanctions at a higher level than they were last month, and this is done automatically without a vote of any kind needed in the UN.

For me, the most important part of this great deal is that when Iran becomes a thriving part of the world economy it will cause the people of countries like Russia, N.Korea and other trouble-makers to put pressure on their leaders to not be an irritant to the world and suffer with sanctions. It is similar to what just happened with Argentina where the people got rid of leaders who were causing issues on the world stage and hurting their economy.

 

That is good news not only for the Iranis but also for us because Iran has oil and it can share their product to the world market. That means the price of oil in the world market will tend to go down due to the inclusion of Iran's oil. But what is the reaction of Saudi Arabia on this news item? From what I gathered there is a bickering between Iran and Saudi because of the execution of a top Shia cleric of Iran by Saudi Arabia.

 

On the BBC radio they were saying the Airbus thing is not a done deal--and even when it is there will be a 5 year gap before the orders are delivered. There are still plenty of sanctions in force and companies are really cautious because of he huge fines sanction-breakers have been hit with in the past.

IMHO China will comes out of this the big winner especially when the oil sanctions are lifted. Because they helped Iran even when the sanctions were I place and that will not be forgotten.