By Afro-Middle East Centre
The International Atomic Energy Agency’s 16 January certification that Iran had complied with the provisions of the Joint Comprehensive Plan of Action (JCPA) negotiated between it and world powers over its nuclear programme means that sanctions relief would be forthcoming, will have substantial regional and global consequences.
Even prior to the deal’s conclusion, Saudi Arabia and certain members of the Gulf Cooperation Council (GCC) had expressed dissatisfaction and had resolved to intervene in Yemen, and to increase support to Syrian opposition groups. Fears of a resurgent Iran after the lifting of sanctions have led to many GCC members downgrading ties with Iran and reequipping their armed forces. Iran’s compliance with the deal has also reduced the probability of an Israeli air offensive against the Islamic Republic over fears of an international backlash. However, Israel’s weakened regional position and difficult relations with the Obama administration will increase covert relations between it and Saudi Arabia. Globally, increased Iranian oil and liquefied natural gas supplies have helped lower energy prices, and diplomacy and the nuclear non-proliferation treaty have been strengthened.
The deal is also triggering a significant effect domestically. Polarisation between Iranian institutions wary of relations with the West, such as the Islamic Revolutionary Guard Corps (IRGC) and those, such as President Hassan Rouhani and foreign minister Mohammad Javad Zarif, who have worked to improve Iran’s international standing, have increased. At the core of this is the fear among some that Rouhani seeks to liberalise Iranian society, and that the nuclear deal is the first step in a wider détente between it and the USA, which some perceive as posing a threat to the character of the Islamic Republic. Some in this camp are still distrustful of the role played by Rouhani’s benefactors after the disputed 2009 presidential election. Flexing its muscles, the IRGC, in the past three months alone, performed two missile tests, allegedly fired at an American aircraft carrier in the strait of Hormuz, and captured and later released ten American Navy personnel who had traversed Iranian territorial waters. Some referred to the deal as nuclear sedition, while others argued that the country had conceded too much. The Supreme Leader, Ayatollah Ali Khamenei, has adopted a more balanced position, supporting the negotiations while remaining critical of America and other western states.
Polarisation has been compounded by two impending elections in February: a parliamentary election, and the election for members of the Assembly of Experts. The latter body, whose members serve for eight years, appoints the supreme leader. Since it is believed that seventy-four-year old Khamenei may not survive the next eight years, the next assembly will likely choose his replacement, making this election extremely critical. Rouhani’s ally, the influential Akbar Hashemi Rafsanjani, has announced he will attempt to again become head of the Assembly, and seeks to empower it by granting it a supervisory role over the next supreme leader. Such a change will qualitatively alter Iran’s governance structures. This has been interpreted as posing an internal threat to the regime by some Iranians who view him as a ‘seditionist’, and have sought to minimise his role in the country’s governance.
Sanctions relief, a core tenet of Rouhani’s 2013 electoral platform, will likely result in increased popular support for reform-minded members in the parliamentary election, and Rouhani’s re-election in the 2017 presidential poll. Conservatives in the Guardian Council – which vets electoral candidates – have thus disqualified most Rouhani supporters wishing to contest the February poll. Only thirty-three of the over 3 000 Rouhani supporters were approved to run in February.
Economically, sanctions relief will aid Iranians and encourage development. The 100 billion dollars in unfrozen assets (thirty billion of it almost immediately) will boost government revenue, and assist it to compensate for the declining oil price. Relief from financial sanctions will foster investment, and increase the number and variety of consumer products. More than 140 business delegations have already visited Iran since the deal’s conclusion in June 2015. Manufacturing, energy, and transportation have attracted the most interest, and conglomerates such as Alstom, Eni, Renault and Ericson had expressed interest before the agreement was signed. Iran will, however, have to deal with corruption and inefficiency issues to fully benefit from sanctions relief. Further, the low oil price, which accounts for most government revenue, will reduce benefits gained from increased oil production and increasing sales. Economic liberalisation, one of Rouhani’s aspirations, has become more possible in light of potential new investment, but will likely increase the double-digit inflation rate, impacting on the country’s poor and lower middle classes. This will be felt once the jubilation and relief over the lifting of sanctions wears off. Significantly, the opening up of the country’s economy will impede the influence of the IRGC, which is heavily involved in the Iranian economy, and which will have to compete with foreign companies.
None of this poses an existential threat to the regime and the governance institution of the velayat-e-faqih. Despite the seeming contradictions, elite consensus continues to favour the system. Rouhani and his ilk do not seek the system’s dissolution, but hope economic and cultural liberalisation will ensure its survival. They therefore participated in electoral processes even after the 2009 election and subsequent crackdown, many of whose targets are still behind bars. Rouhani is, after all, a confidant of Khamenei, who appointed him to the Supreme National Security Council. Moreover, the system is still viewed favourably by most citizens, with seventy-two per cent participating in the 2013 presidential election. Although the nuclear deal’s greater impact will be on the regional and international stages where a Cold War-like atmosphere is developing between Saudi Arabia and Iran, its domestic implications will also be noteworthy in shaping the country’s societal and political evolution.
By Afro-Middle East Centre
By Afro-Middle East Centre
By Afro-Middle East Centre
Relations between the two countries were non-existent since the 1979 Islamic revolution and the subsequent US embassy hostage crisis which resulted in the deaths of around fifty Americans. The USA then militarily and financially supported Saddam Hussein’s Iraq in a war against Iran. It also maintains a trade embargo on Iran, and has spearheaded sanctions – including secondary sanctions – against the country. Considering the US strategic relationship with Israel, and its support for Saudi Arabia and other Gulf states, it was expected that it would be difficult for the administration of US President Barack Obama to win the Senate vote. The powerful pro-Israeli lobby in the USA, the American Israel Public Affairs Committee (AIPAC) spent over 30 million dollars in the past few months lobbying US Congress and senate members to support the motion rejecting the deal. However, Obama secured the votes required to filibuster the motion in the week before the debate on it, and was able to successfully withstand two other attempts to pass similar motions.
Despite this victory for the deal, it will not significantly alter US-Iranian relations, and the US trade embargo on Iran will continue. The USA will now permit ‘international’ companies to trade with Iran using the US financial system, thus allowing EU and Asian oil trade to resume and investment into the Iranian economy to dramatically increase. But a US embassy will not be opening in Tehran anytime soon, nor is Iran rushing to despatch an ambassador to Washington. The nuclear deal is an arms control treaty whose language and details have much to do with technical specificities, compliance mechanisms and inspection details. It is, according to both the USA and Iran, transactional. The Obama administration has called it a solution to ‘one of many problems’ associated with the Islamic Republic, while Iranian supreme leader Ali Khamenei promoted it as ‘heroic flexibility’ necessary to extract concessions from the USA. While US policymakers are concerned about Iran’s support of proxies, and its attempts to undermine US interests, many in Iran fear the deal is aimed at weakening the regime and that too many concessions had been made to achieve it.
Future US-Iranian relations arising out of the deal will likely be similar to relations between China and the USA following US President Richard Nixon’s agreement with China in 1972. After the communiqué about the agreement between the two states had been issued, the Chinese government increased its support to Viet Cong forces fighting US troops in Vietnam; the Cultural Revolution continued; and Beijing maintained its support to guerilla groups in Africa and Asia.
Only seven years later, in 1979, under the leadership of Deng Xiaoping did China begin to rethink its foreign policy. Although China is now fully integrated into the international system, it still opposes US interests. It is employing its military might to secure resource-rich disputed islands in the South China Sea, has utilised its UN Security Council veto to protect its allies – including Sudan’s Omar al-Bashir, and is currently involved in around a dozen WTO disputes with the USA over alleged infringement of intellectual property and trade violations. The evolution of US-Iranian relations will follow a similar path. Iran is unlikely to simply comply with and accede to the US worldview and interests, especially as US power is waning compared to China, which has a different view on intra- and interstate relations and the nature of the international system.
With the Iran deal having passed through the potentially difficult process in the US Congress, the winner of the 2016 US presidential election will be irrelevant to the future of the agreement. Although the USA is, theoretically, able to unilaterally sanction Iran, it will be extremely tough to implement more nuclear-related sanctions, especially if Iran complies with the stipulations of the agreement. Moreover, the accord was between Iran and the P5+1 (USA, Britain, France, Russia, China and Germany), and a unanimous UN resolution gave effect to it once it was concluded. Any US attempts, then, to undermine it will be shunned by the international community, especially by the European Union, meaning that the USA will have to institute sanctions on its own, drastically reducing their effectiveness.
With little opposition to the deal being expected from Iran, especially since it has largely been supported by Khamenei, it will take full effect in January 2016, and will quickly become irreversible, with Iran being the biggest winner from it. However, it is not an indicator of broad rapprochement between Iran and the West; indeed, by allowing Iran greater flexibility in its operations in the Middle East region, the agreement may in the short term even allow the Islamic republic to undermine western interests in the region, especially in Syria and Iraq.
By Fawaz A. Gerges
In an important and alarming report to the United Nations Security Council early July, Secretary-General Ban Ki-moon warned that an increase in tensions between Lebanon and Israel could lead to a new war with potentially devastating consequences for the entire region.
The UN chief cited dozens of instances when the two antagonists - Israel and Hizbullah - almost broke out into war, and accused them of violating the 2006 ceasefire resolution that ended the 34-day July war in 2006. While Hizbullah continued to maintain "a substantial military capacity", Ban said, Israel continued to violate the ceasefire by conducting daily flights over Lebanon, and refused to withdraw from the disputed border village of Ghajar.