USA and Iran are at odds again. Find out why.

image_pdf

The United States of America (US) has been at odds (in disagreement) with several countries. These differences of opinion range from trade wars with China and the EU, to the US threatening to leave NATO, and include its ongoing discord with Iran. 

The US government recently pulled out of the Iran Nuclear Deal ignoring requests from other world powers who had signed the deal, including Britain, France, Germany, China and Russia.

Quick Recap:

Iran Nuclear Deal

What is the Iran Nuclear Deal?

The US has imposed sanctions or economic punishments on Iran off and on since 1979. The world has been worried because Iran has been developing nuclear weapons and the developed world doesn’t want to see nuclear weapons in the hands of unstable regions. The sanctions have meant that no one has really been trading with Iran for many years.

In 2015, US President Barack Obama and other major World Leaders succeeded in making a deal with Iran. The deal said that Iran would cut down its investment in the development of nuclear capabilities and that it would allow international inspectors to visit their nuclear facilities and see what they are up to. In return, they would lift the sanctions and the world would trade with Iran. This meant that Iran would then be able to grow its trade and do better for its people.

Why did the US back out of the deal? When US President Donald Trump took office, he voiced his disapproval of this deal. He didn’t think that this was a great deal for the rest of the world and wanted tighter control over Iran’s nuclear capabilities. So, he pulled the US out of the nuclear deal with Iran in May 2018, and reimposed sanctions on Iran. This means that once again, the USA will not trade with Iran.

Presiden Trumps imposes new sanctions on Iran

So why are we talking about this again in August? The US hoped that its allies Britain, France, Germany and the European Union would also pull out of the nuclear deal. However, the other countries continue to support the nuclear agreement and have urged their firms to continue to do business in Iran.

So in retaliation, the US has imposed a new set of sanctions on Iran. This time, Trump went one step further and said that companies doing business with Iran will be banned from doing business with the US.

In essence, the US is bullying its allies into supporting sanctions and is pressuring major European and Asian companies to choose between the tiny Iranian market and the large lucrative American market.

For example, the German maker of Mercedes-Benz cars and trucks announced that they have suspended activities in Iran because of sanctions as they don’t want to risk their US business. Similarly, European Banks are refusing to do any business connected to Iran, for fear of being punished by the U.S.

What are some of the sanctions?

The sanctions will limit Iran’s export of oil and gas, carpets and certain foods to the rest of the world. They will limit imports of raw materials and other essential parts into Iran that will hit Iran’s growing steel, aluminum and automotive sector. Iranian companies will lose business and cut jobs. This will lead to more unemployment and lower wages. People will be unable to buy food and medicines.

Iranian President Hassan Rouhani

So basically through these new set of sanctions, the US is trying to isolate the Iranian economy and pressurize the Iranian regime to re-negotiate a stricter nuclear deal with the US.

Will this new set of sanctions bully Iran into a stricter nuclear deal? Will new sanctions hurt the regime or the Iranian people? How long will EU countries be able to support the nuclear deal and Iran?


Written By: Biyash Choksey and Sunaina Murthy

Spread the love
No Comments Yet

Leave a Reply

Your email address will not be published.

Write to us at
mail@currentkids.in

Help us keep currentkids, current! We’d love to hear about your crazy adventures and experiences. Send us your pictures, travel diaries, thoughts on cool new gadgets, gaming experiences and anything else you find interesting!

About Us

Welcome to our entertaining and empowering news source for kids with inquisitive minds! This is a digital space that keeps kids aged 8 and above (and your families!) connected to what’s happening in the world. We filter a wide variety of news, events, and interesting bits of trivia to develop short, relevant, unbiased content in creative formats. We give everyone something to relate to and get engaged with in short bytes of information with a snappy, chatty feel. We believe in encouraging curiosity, creativity and continued learning in our safe digital space.

Why is reading non-fiction important?

This helps curious minds to learn more about the outside world. It also enriches their vocabulary and their general knowledge. Simplified news helps children to express their opinions easily with their friends and family and gives them some perspective on complex issues. Our safe news website will give you parents a useful tool with which to navigate the digital world with your children.

We hope you enjoy our posts!

Biyash & Sunaina

Subscribe to our weekly newsletter and stay current!

 

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.