Yet, despite the uncertainty, negotiations between Iran and the P5+1 nations – including China, Russia, France, the United Kingdom, the United States, and Germany – resulted in a comprehensive agreement.
“It’s not a perfect deal,” Escobar points out, making note of the various parts of the agreement which will have to be arduously implemented. Over the next five months, for instance, Iran will have to prove that it’s complied with all of the new regulations limiting its nuclear capabilities. The West, in turn, must now undergo the process of dismantling its sanctions against the Islamic Republic.
But once everything falls into place, the Iranian economy will see a significant boost.
“The internal economic situation in Iran will only start seeing major developments next year,” Escobar says.
“There are a lot of major multinational companies from Asia and from Europe. They are desperate, they are already in position to crack the Iranian market.
The country will have more funds, of course, more trade, better standard of living, of course.”
Iran is going to, little by little, reaffirm itself as a major economic powerhouse in the Middle East,” he adds.
Escobar also notes that as sanctions are lifted, many European nations will begin to see Iran as an alternative energy provider. While on the surface this may appear problematic for Russia, Escobar points out that, far from being competitors, Iranian and Russian markets will help balance the region.
“Russia has a very privileged position of selling energy to Europe, but also to China. Iran also sells energy to China,” Escobar says.
“So there won’t be a clash in terms of selling energy between Iran and Russia. Iran obviously wants to send more energy to Asia, but that’s obvious. The main client is China, and China is the main client of everybody.”
Iran will also benefit greatly from its central location among the rising Eurasian markets.