Steps taken towards US-Iran peace agreement, hope of opening of Strait of Hormuz, India may get relief

Washington/Tehran/Doha. The news of major progress regarding the peace agreement has come to light as the 107th day of conflict between America, Israel and Iran is completed since February 28. According to reports, an interim agreement has been drafted between the US and Iran, which can be signed soon. However, there are still differences between the two parties regarding some terms of the agreement and their implementation.

The most important provision under the proposed agreement is immediate and permanent ceasefire. Apart from this, there is said to be an agreement on reopening of the Strait of Hormuz within 30 days, removal of the naval blockade imposed by America against Iran and relief in many economic sanctions imposed on Iranian oil exports.

Consensus reached on nuclear program also

The draft agreement is said to include a provision to allow Iran to continue its peaceful civil nuclear energy program. Iran will reiterate its commitment not to develop nuclear weapons under the Non-Proliferation Treaty (NPT). It is proposed to continue talks for 60 days for the final nuclear agreement between the two countries.

Return of seized assets and relief from sanctions

According to the draft, Iran’s seized assets worth about $24 billion deposited abroad can be released in a phased manner. Additionally, several sanctions on the sale of crude oil, petrochemical products and petroleum derivatives are likely to be temporarily suspended, giving Iran the opportunity to sell oil in the international market again.

India benefits from opening of Strait of Hormuz

The most important issue for India is considered to be the reopening of the Strait of Hormuz. About 20 percent of the world’s oil and gas trade takes place through this sea route. Global energy supplies were affected due to war and blockade, leading to a sharp rise in crude oil prices.

Experts believe that if the strait opens and Iranian oil comes back into the market, global crude oil prices may soften. This will provide relief to big oil importing countries like India. Indian refineries may also get the option to buy oil from Iran at relatively cheaper and favorable terms again.

Uncertainty still remains

Although there are positive signs regarding the agreement, final agreement on many points is still pending. In particular, issues like Iran’s ballistic missile policy, support to regional allies and complete removal of sanctions can play an important role in future negotiations. Currently, the world’s eyes are on a possible agreement between the US and Iran, because it can impact not only the Middle East but also the global energy market, international trade and the economy of many countries including India.