#Iran's recovery seen as modest with return to original nuclear deal - IIF | Reuters

Iran's recovery seen as modest with return to original nuclear deal - IIF | Reuters

Iran’s economic recovery is likely to be modest should it revive a 2015 nuclear deal with six world powers without expanding the scope of the pact, according to a trade body for the global financial industry.

Hardliner Ebrahim Raisi’s victory in a presidential election this month will not derail the nuclear negotiations, but the United States may face difficulties in expanding the scope of the accord, the Institute of International Finance (IIF) said in a report.

“The likely outcome for the JCPOA (Joint Comprehensive Plan of Action) negotiations is a return to the 2015 agreement, which would keep many sanctions in place. Such a limited agreement would deter significant investment by Western firms, making a sharp pickup in growth unlikely,” it said.

Iran and the United States have been holding indirect talks since April to revive the 2015 nuclear deal, which then U.S. President Donald Trump abandoned in 2018, reimposing sanctions.

U.S. President Joe Biden is seeking to revive and eventually broaden the nuclear pact to put greater limits on Iran’s nuclear and ballistic missile programmes, as well as constraining its regional activities.