Tuesday 21 July 2015

The Side effects of the Iranian nuclear deal

Sanctions imposed by the UN, US and EU in an attempt to force Iran to halt uranium enrichment have crippled its economy, costing the country more than $160bn (£102bn) in oil revenue since 2012 alone. Iran stands to receive more than $100bn in assets frozen overseas, and will be able to resume selling oil on international markets and using the global financial system for trade.

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The long awaited deal continues my forecast concerning Iran gaining Nuclear Weapons. So instead of covering old ground I will look at some of the other unintended side effects of the cancer (otherwise known as the Joint Comprehensive Plan of Action (JCPOA) ). The side effects will stem from the lifting of economic sanctions. The sanctions were apart of the international community effort to prevent Iran from gaining Nuclear Weapons. Below is my predictions for what the side effects will be for the Middle East region.

My prediction is that the main side effect will be the Iranian regime increasing funding for Hezbollah and Houthis. Both Hezbollah and Houthis are proxies for Iran's interests and regional territorial ambitions. The funding will be used to increase the flow arms to Hezbollah and Houthis. IMO better equipping existing units or expanding the number of them taking part in the Yemen insurgency is why Iran was keen to have the sanctions lifted.

Saudi Arabia and Yemen have been sacrificed by the international community . By 2020 Iran will have consolidated it's hold on Yemen. After Yemen Iran will gobble up Saudi Arabia. I estimate that it will take Houthis around five years to seize control of Saudi Arabia.

Currently Iran and Isis are engaged in a race for Saudi Arabia . The additional support Houthi receives from Iran will ensure they win the race for Saudi Arabia. Isis also has Jordan as a roadblock in the way of winning the territorial race. To what degree Isis and Houthsi contest Saudi Arabia remains to be seen.

They key to taking long term control of Saudi Arabia is the country's urban centres and major road networks . Upon moving into the country the first goal of Isis and or Houthi will be to destroy or capture the infrastructure that supplies fresh drinking water to the population centres. The supply of drinking water is the life blood to a desert country like Saudi Arabia. Cut off the the supply of blood and the country dies.

As the threat to Saudi Arabia becomes more apparent it will cause a spike in global oil prices. For Kiwi's that could mean petrol hovering around $2.18 per Litre. We are going to pay the price for western leaders appeasing Iran in our wallets and with the coming world war.

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