Iran’s Ayatollah Ali Khamenei expresses ‘pessimism’ after nuclear deal

Congressman Jim Costa sees the prisoner release and the nuclear deal with Iran as a cautious step forward.

On Saturday the USA and European Union lifted sanctions against Iran after a report by the worldwide nuclear watchdog said the country had complied with all of the nuclear agreement’s requirements, including the dismantling of the reactor at its Arak nuclear facility.

Hours earlier, his transport minister Abbas Akhoondi told the Tasnim news agency that Iran meant to buy 114 civil aircraft from Airbus – a deal that could be worth more than $US10billion ($F21.9b) at catalog prices. Democratic presidential candidate Hillary Clinton responded to Iran’s release of five Americans by saying that Iran deserves no thanks and is still violating UN Security Council resolutions with its ballistic missile program.

While the deal brings Iran back into the worldwide fold, Tehran finds itself embroiled in sectarian conflicts in West Asia and at odds with regional Sunni heavyweight Saudi Arabia, which views the US-Iran thaw with deep suspicion.

Under July’s deal, Iran’s nuclear activities will be severely constrained and remain under strict oversight for the next decade, but Tehran will then be able to scale up its production of nuclear fuel.

In October, Iran tested a new precision-guided ballistic missile.

Some of that money is tied up in business arrangements that were made in years past and will not be available for spending by the Iranian government.

President Barack Obama on Sunday heralded the implementation of a nuclear deal and prisoner swap with Iran as a victory for diplomacy that would advance USA interests and potentially spark more cooperative relations between Tehran and the world.

“We will continue to enforce these sanctions vigorously”, Obama said.

With sanctions lifted, Iran will now be able to significantly increase its oil exports, long the lifeblood of its economy. He noted the swift release of 10 US sailors who had strayed into Iranian waters.

He said Iran’s prospect for next year’s economic growth was at 5 percent up from 3 percent in the current fiscal year.

On Sunday, as the news of the freed detainees dominated USA headlines, the Obama administration announced the new round of sanctions targeting 11 Iranian entities and individuals linked to the country’s missile program.

The U.S. move was “devoid of any legal or ethical legitimacy”, the Foreign Ministry said in a statement reported by the state-run Islamic Republic News Agency. “They are civilians and their release is a one-time gesture to Iran given the unique opportunity offered by this moment and the larger circumstances at play”.