Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Rip the Face Off the Bears Rally! - 22nd Dec 24
STOP LOSSES - 22nd Dec 24
Fed Tests Gold Price Upleg - 22nd Dec 24
Stock Market Sentiment Speaks: Why Do We Rely On News - 22nd Dec 24
Never Buy an IPO - 22nd Dec 24
THEY DON'T RING THE BELL AT THE CRPTO MARKET TOP! - 20th Dec 24
CEREBUS IPO NVIDIA KILLER? - 18th Dec 24
Nvidia Stock 5X to 30X - 18th Dec 24
LRCX Stock Split - 18th Dec 24
Stock Market Expected Trend Forecast - 18th Dec 24
Silver’s Evolving Market: Bright Prospects and Lingering Challenges - 18th Dec 24
Extreme Levels of Work-for-Gold Ratio - 18th Dec 24
Tesla $460, Bitcoin $107k, S&P 6080 - The Pump Continues! - 16th Dec 24
Stock Market Risk to the Upside! S&P 7000 Forecast 2025 - 15th Dec 24
Stock Market 2025 Mid Decade Year - 15th Dec 24
Sheffield Christmas Market 2024 Is a Building Site - 15th Dec 24
Got Copper or Gold Miners? Watch Out - 15th Dec 24
Republican vs Democrat Presidents and the Stock Market - 13th Dec 24
Stock Market Up 8 Out of First 9 months - 13th Dec 24
What Does a Strong Sept Mean for the Stock Market? - 13th Dec 24
Is Trump the Most Pro-Stock Market President Ever? - 13th Dec 24
Interest Rates, Unemployment and the SPX - 13th Dec 24
Fed Balance Sheet Continues To Decline - 13th Dec 24
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Iran Nuclear Talks, Does a Missed Deadline Matter?

Politics / Nuclear Weapons Apr 02, 2015 - 12:35 PM GMT

By: STRATFOR

Politics

The Obama administration has slipped past self-imposed deadlines and minced words over red lines before. Although certainly an embarrassment for the White House, another missed deadline in the seemingly never-ending Iran nuclear negotiations — which stretched beyond the latest deadline of March 31 — may not matter much in the end.


From Iran's point of view, it was a deadline to be exploited, not one to fret over. Iranian leaders, including Supreme Leader Ayatollah Ali Khamenei and Foreign Minister Javad Zarif, had expressed misgivings about a framework agreement, insisting that the deal is not done until all core issues are resolved in a final deal. The White House imposed the March deadline to prove to Congress that enough progress was being made to hold off on sanctions. Still, a dodged deadline and a diluted progress report are unlikely to calm dissenters in Congress. Even if a bill calling for additional sanctions in the event of a violation of an agreement makes its way through Congress, it will be vetoed in the Oval Office. Congress overturning that veto is a less likely prospect.

Ironically, the U.S. congressmen vehemently threatening more sanctions are working in Iran's favor in this stage of the negotiating process. The more effort the U.S. negotiating team has to put into keeping Iran at the table, the more leverage Iran has in the talks. So, as the plethora of leaks on Monday all pointed toward the drafting of an agreement, Tehran strategically dropped a bombshell at the last minute. It said that while it would agree to reduce the number of operational centrifuges to 6,000 — going against the supreme leader's earlier demand for at least 10,000 centrifuges to remain in operation — it would pull back on an earlier concession to ship its low-enriched nuclear fuel to Russia.

This is a classic negotiating tactic: One party throws up a flare, panic ensues and once all sides return to the table, any further concessions from the instigator appear that much more generous. The next three months will be filled with such twists as the window for negotiations narrows.

In Iran's neighborhood, states like Saudi Arabia do not have the luxury of betting against the United States and Iran and have to prepare for the worst. The developing U.S.-Iranian relationship is what has driven Saudi Arabia into action in leading its Sunni allies against Iran across multiple fronts, with Yemen now in the spotlight.

Israel may also be upset at the United States for negotiating what it considers a bad deal with Iran, but it cannot deny that the upsurge in Sunni determination to contain Iran is a good thing. For example, Sudan's recruitment into the Saudi-led alliance had been months in the making, but the end result is that Iran has lost a critical conduit to supply arms to militant groups like Hamas and Palestinian Islamic Jihad through supply routes that run from Port Sudan up through the Sinai Peninsula to the Gaza Strip. So long as Hamas struggles to replenish its weapons, including long-range rocket components, Israel has less to worry about.

Egypt is another beneficiary of the Saudi-led "Decisive Storm" operation. The White House never abandoned its close relationship with Cairo, but it became entangled politically by branding the deposal of former Egyptian President Mohammed Morsi a coup and demanding steps toward democracy before resuming aid. While the United States was trying to maintain its political correctness, Russia took the opportunity to court Egypt with military and energy deals, trying to broadcast the message that Washington's role had been filled in the Middle East.

Cairo simply used the attention from Moscow to bargain with Washington, waiting for the politics to become conducive enough to normalize relations with the United States with the understanding that a relationship with Washington would matter much more than one with Moscow. Egypt has yet to reschedule its elections, yet its participation in the Yemen operation gave the White House the justification it needed to show that Cairo is still a key Arab ally worthy of a dozen F-16 fighter jets that are now being delivered.

Much will be made of a missed deadline in Lausanne. Doubts will be cast over a potential agreement. But it is important to keep some perspective. This deadline over an interim agreement did not mean much to Iran in the first place. Progress, however uneven, is being made in the nuclear negotiations, and a U.S.-Iranian understanding is already having reverberations across the region.

"In the Iran Talks, Does a Missed Deadline Matter? is republished with permission of Stratfor."

This analysis was just a fraction of what our Members enjoy, Click Here to start your Free Membership Trial Today! "This report is republished with permission of STRATFOR"

© Copyright 2015 Stratfor. All rights reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis.

STRATFOR Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in