5 key takeaways from Iran's nuclear deal

The deal is being termed as "historic", and is a result of nearly 20 months of negotiations. USA President Barack Obama, while maintaining that the deal was one of the biggest diplomatic coup of his term of presidency, remained cautious as he said that the agreement is “not built on trust — it is built on verification.”

Iran and super powers of the world like Germany, United States and Russia among others, have arrived at a major nuclear deal, that will lift economic sanctions from Iran in lieu of its commitment to stop work on building nuclear bombs. The deal is being termed as "historic", and is a result of nearly 20 months of negotiations. USA President Barack Obama, while maintaining that the deal was one of the biggest diplomatic coup of his term of presidency, remained cautious as he said that the agreement is “not built on trust — it is built on verification.”

Below are 5 major takeaways from the deal

Restriction:  Iran will reduce the number of uranium-enriching centrifuges it has from almost 20,000 to 6,104. It will also cut the number of "in-use" reactors from 10,000 to half that. Moreover, it will reduced the current stockpile of low enriched uranium by nearly 98% in the process.

Breakout time: This is the time required to produce enough weapons-grade uranium (WGU) for one nuclear weapon. Iran currently had the breakout time of nearly three months. With the current deal and the reduction in the number of centrifuges as well as the uranium stockpile, the breakout time will extend to nearly one year, say analysts.

Adherence to sanctions: If Tehran is found violating any norms of the deal, the eight member panel consisting of Britain, China, France, Germany, Russia, the United States, the European Union and Iran itself, will agree to snap back all sanctions in place. An arms embargo will stand for five years and restrictions on Iran’s ballistic missile programs for eight. The reactor at Arak would be redesigned so it can’t produce plutonium for nuclear weapons.

New Horizon: Iran hopes for a better economic condition after the severe sanctions had crippled the local currency, rial, which caused inflation. South America and the European countries of Germany, Italy and France were in favour of lifting the sanctions as they would be able to resume export consumer products like cars and apparel to Iran in that event.

Oil: Iran is OPEC's fourth-largest oil producer. Going by few estimates, it has millions of barrels of oil that can be exported to needy countries. This new stock is bound to have an effect on oil prices, with many analysts agreeging that the prices will eventually fall.