The historic nuclear deal between Iran and six major global powers “may have laid the building blocks for World War III, but there may be a few more products to sell in the meantime” because Tehran will snap up technological innovations, Tom Hutchinson, senior editor of the Newsmax newsletter "The High Income Factor," told Newsmax TV.
Major powers clinched a historic deal aimed at ensuring Iran does not obtain the nuclear bomb, opening up Tehran's stricken economy and potentially ending decades of bad blood with the West.
President Barack Obama hailed a step towards a "more hopeful world" and Iran's President Hassan Rouhani said it proved that "constructive engagement works." But Israel pledged to do what it could to halt what it called an "historic surrender," Reuters reported.
Under terms of the deal, the culmination of 20 months of arduous diplomacy, Iran must dismantle much of its nuclear program in order to secure relief from biting sanctions that have battered its economy. International inspectors can now press for visits to Iran's military facilities, though access is not guaranteed. Centrifuges will keep spinning, though in lesser quantities, and uranium can still be enriched, though at lower levels.
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Iran stands to receive more than $100 billion in assets that have been frozen overseas and benefit from an end to various financial restrictions on Iranian banks. Iran could also sell more oil, bringing down crude prices.
Hutchinson told “Newsmax Now” that Iranians most likely will warmly welcome the world’s technological innovations – and countless other products.
“The technology, the iPhones, jeans, just about everything. They'll eat it up with a spoon. But it's going to be gradual. It's not going to be the day after tomorrow all of a sudden these huge markets are flying open," he said.
He said Iran's economy "needs a lot of repair and before you see any kind of robust demand, it's going to take a little bit. But they expect – the Iranian officials to the extent can be trusted – to grow at 7, 8 percent for the next several years when these sanctions come off.”
He said such a booming new geographic market for business may be the only “silver lining” to a deal many are deeply fearful about.
Hutchinson said the deal itself “may have laid the building blocks for World War III, but there may be a few more products to sell in the meantime.”
Obama said the agreement offered a chance to reset vexed relations with Tehran.
"Every pathway to a nuclear weapon is cut off," he said. "This deal offers an opportunity to move in a new direction. We should seize it."
But House Speaker John Boehner, a Republican, said the agreement would "embolden" Tehran and likely "fuel a nuclear arms race."
Sealed in Vienna after a 13-year stand-off, the deal was reached between Tehran and the United States, Russia, China, Britain, France and Germany, AFP reported.
The deal will sway global oil prices, but possibly not right away, Hutchinson said.
“It's going to have an impact. I don't know that it's going to have that much of a major impact. It's going to take (Iran) a while to get ratcheted up back to where they were, which is about 3 million barrels a day. So it's not enormous, but again, it's still increasing supply,” he said.
“You’re getting a supply going up, demand weakening as a global economy is sort of sputtering again, and none of this is healthy for oil prices, so we see it (oil prices) going down,” he said.
“This is the biggest economy to be added to the world market since the fall of the Soviet Union,” he said.
“So economically, it's good. Politically, it's a different story but economically an economy like this coming on is good news.”
(Newsmax wire services contributed to this report.)
About Tom Hutchinson
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