Parameters On Iran Nuclear Deal Reached, Offers Path For Sanctions Relief

On April 2, 2015, the parties of the P5+1 (US, UK, France, China, Russia and Germany) and Iran reached what they are calling the "key parameters" of a Joint Comprehensive Plan of Action (JCPOA), regarding Iran's nuclear program. These parameters address many key issues, such as enrichment capacity, centrifuge infrastructure, reactors and inspections, phased over 25 years. These parameters also outline the basis on which a number of US, EU and UN Iran-related sanctions would be suspended, thus offering a path for Iran to reintegrate into the global economy.

The parties still need to finalize the details of the JCPOA by June 30, 2015. But the key parameters announced late last week illuminate the main conditions for the suspension of Iranian nuclear-related economic sanctions now in effect. A final JCPOA will therefore have significant implications for investment in Iran. We discuss below how, under the key parameters, Iran may be reintegrated into the global economy.