The integration of Iran

Iran has made the first steps of what many now believe will be the integration of Teheran back into the international economy.

But the return will not be without problems.

The deal for a return has been hammered out over many years, but United States Secretary of State John Kerry's close friendship with Iranian Foreign Minister Javad Zarif has proved to be the link missing on the US lifting sanctions imposed against Iran.

Three Iranian-Americans left Teheran for Germany at the weekend under a prisoner swap following the lifting of international sanctions on Iran as part of the deal President Barack Obama says has cut off Teheran's path to a nuclear bomb.

In return, Iranians imprisoned in the US were released and pardoned.

Mr Obama says the agreement allows people to see what is possible through strong American diplomacy.

These things are a reminder of what can be achieved when leading with strength and with wisdom.

In Teheran, ordinary Iranians remain cautious about what the future holds.

Many have lived with sanctions or wartime austerity for so long they have no clear expectations about what the future may hold.

America's thaw with Iran is viewed with deep suspicion by US Republicans as well as allies of Washington in the Middle East, including Israel and Saudi Arabia.

US-Iranian suspicion remains firmly entrenched, although full economic ties will not be fully restored.

For the world, the thaw in relations between Iran and the US may mean an easing of nuclear intentions within the Middle East.

But Iran is still in a hostile religious relationship with Saudi Arabia, something Mr Obama seems powerless to stop.

Saudi Arabia has dominated global oil markets, keeping the supply high as a political tool against its enemies.

Now the 40-year sanctions have ended, there is market fear energy firm shares will fall sharply and the 12-year low of $US29 a barrel for oil will be tested further.

Iran has said it will sell up to 500,000 extra barrels of crude oil.

Iran also gets back billions of dollars worth of funds held offshore as part of the sanctions.

There is every chance the Iranian economy will change quickly if managed correctly.

Iranian President Hassan Rouhani is regarded as a pragmatic moderate by world powers but even he will be tested if the sanctions are to remain removed.

Mr Rouhani took a swipe at Iran's critics, saying everybody is happy with the lifting of sanctions except the Zionists, the warmongers who are fuelling sectarian war among the Islamic nation, and the hardliners in the US Congress.

Israel remains the most vocal opponent and may find itself further isolated as it warns against Iran funding Lebanon's Hezbollah and other guerrillas.

Israel has requested a boost in US defence aid to as much as $US5 billion annually when the current package worth an average of $US3 billion expires next year.

Israel has a close relationship with US Republicans and Mr Obama has a year in which to cement the deal with Iran - to make sure if he is replaced by a Republican president, the deal will stand.

The deal is a crowning achievement for Mr Rouhani, who has pledged to reduce Iran's international isolation.

Britain welcomed the deal's implementation, as did France. Japan says it plans to lift most of its sanctions against Iran, including a halt to fresh investments in Iranian oil and gas projects within a few days.

The European Union is particularly keen to develop Iranian oil supplies as an alternative to Russia.

The peaceful integration of Iran back into the global economy should be welcomed, as long as the country continues to abide by international rules negotiated as part of its return.

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