Sanctions were progressively imposed after Iran started pursuing a nuclear weapons programme which would eventually have lead to the construction of an atomic bomb. The new-found status of the West Asian nation, which has a GDP of $400 billion and a population of 80 million, will give it access to nearly $100 billion in financial assets frozen in banks abroad and open pathways for import of goods, especially machinery for manufacturing. President Hassan Rouhani, a pragmatist who nudged his country towards a softer, yet more practical position said Iran has to building an economy that goes beyond crude oil. To mark at end to hardship brought upon by sanctions, Tehran announced the purchase of 100 aircraft from Europe’s Airbus at the cost of nearly $10 billion. The re-entry of Iran, the biggest economy to rejoin the global trading system since the Soviet Union broke up, also means the addition of 1.1 million barrels of crude to the oil pool, which will take prices further south and benefit crude-importing nations. Foreign companies, however, would prefer to adopt a wait-and-watch stance as sanctions could snap back if Tehran takes a wrong step. The situation is still fragile but with Rouhani at the helm and Iran wanting to do the right thing, the chance of backsliding seems distant.
Iranian spring
As the world released the chain of sanctions that had bound the legs of the economy, Iran stood up firmly and for the first time since 2006, re-entered the world economy as a responsible player.
