Obama presidency overview a major coup of the Obama administration was the
nuclear deal which limited Iran from producing a nuclear weapon. Months of
preparations and the involvement of eight countries – Iran, China, Britain,
France, Russian, United States, Germany and the EU lead to this historical
agreement between extreme opponents. Iran had been secretly nurturing nuclear
bomb dreams. Many countries had opposed Iran in this. But an Iranian exile
group exposed Iran’s continued nuclear developments despite opposition from
other countries. This led to the United Nations imposing sanctions on Iran on
its oil business, weapons and financial transactions, which was followed by the
USA and EU imposing sanctions too. These sanctions deteriorated Iran’s economy.
This led to bitter relations between Iran and the rest of the world. To make
nuclear weapons, an important component is Uranium ore that has to be mined
from the Earth. This mined Uranium is processed to Uranium 235 using a device
called centrifuge. Under the nuclear deal, Iran had to reduce its current
number of centrifuges from 19000 to 6000. Enrichment (another type of uranium)
levels would be brought down to 3.7% from the previous 90%. All this would in
return limit Iran’s nuclear bomb dreams. After the nuclear deal was signed by
Iran, slowly the sanctions imposed on it were also removed. First the oil
embargo that was used to prevent the import of oil from Iran was removed. Then
the oil and trade sanctions were removed which led to oil and trade imports and
in turn improved Iran’s economy. Simultaneously sanctions on Iran’s financial
system was dropped. This made Iran $100 billion richer as the frozen bank
accounts released funds. The Obama administration felt this nuclear deal would
make the world a safer place and avoid a possible nuclear war.
Trump refuses to
certify Iran’s compliance of terms because he thinks that it won’t benefit U.S.
nationality security interest.
As there will be higher oil imports there will
be higher current account deficit.
Rising the oil prices there will be a fiscal
deficit due to the subsides
Higher oil prices will cause higher input cost
which will generate in higher overall inflation.
Higher input cost will influence the lower
profitability for several industries.
Fall in the stock market will result in loss of
Loss of wealth then will generate into slow
Slow investment cycle will outcome slow
By analysing the impact India will be affected by the
several industries influencing the market and depreciating the INR which would
result in fall in stock market which would cause in the slow productivity which
will cause a sedate GDP in India.
In UAE a major labour force is employed under mining and
quarrying rise in the oil price may lead to rise in the wages of this sector
affecting the market in an extensive way. The traders also said that the price
were increased by a drop in U.S. crude inventories as well as concern that
fighting in Iran and mounting tension between the United States and Iran could
As China being a major economy the rise in the oil price
will majorly affect the exports of the country. As the oil price will increase
the cost of the other market products will also increase.
From the above findings we can conclude that the if the oil
prices increases the profit margin of the country will decreases and will also
affect the inflation rate.