Sanction on Iran by US and EU to restrict the enrichment of Nuclear Plant Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Sanction on Iran by US and EU to restrict the enrichment of Nuclear Plant Case Study Solution

Abstract

Since after the independence of the country Iran, it has remained to be a problematic issue for the western world. Over the period, Iran has entered into Non-Proliferation Treaty (NPT), which outlines the restrictions on Iran for never acquiring the Nuclear power and expertise.However, in the recent years (2005-till now), Iran has been found to practice and procure the nuclear enrichment secretly, which have led to aggravated talks among the US and European Union to restrict Iran from further enriching the nuclear plant, as it posit threat to the peace of the world since it is alleged to bomb on the US and other countries like Israel. However, Iran has offered the justification against the enrichment of nuclear plant as an act to meet the power and energy supply with in the country and has shown a resistance in passing the enrichment process that has led to severe sanctions, disturbing the overall oil price globally and slowing the economic growth of Iran.

Introduction

In the early 20’s, Iran has entered into the Non-Proliferation Treaty.The Treaty restricts all the active member of the agreement from acquiring the nuclear intelligence and enrichment and also restricts the members who have already gained the enrichment before to sustain and control the use of nuclear energy. The treaty binds the members in response to bring peace in the world by pursuing the NPT policy.

However, in the recent years, Iran has been restricted by the United States, United Nations, and the European Union for breaching the treaty of NPT due to the development of a nuclear plant in Tehran secretly in pursuing the trade and global selling of oil and other consumer goods. The breach has been found by the International Atomic Energy Association (IAEA) which acts as a watchdog over the member countries of NPT to monitor and control the activities of the countries.The breach of treaty led to isolate Tehran from the Western world by restricting the import export of Oilin an attempt to raise the cost of production of nuclear weapons and the implantation of a nuclear reactor in Iran, leading to ceasing of the project.

The Role of Security Council

The Security Council acts as the regulatory body that regulates the member counties adhering to the agreement policies and guidelines. It acts as a neutral body that has the authority to veto the decision taken in the NPT meetings.

Since,Iran has remained a disputed territory for the global market due to oil distribution and its demo graphical location for neighboring countries especially USA, the Security Council along with IAEA has put great consideration on the activities of Iran, that may posit threat to the other countries, disturbing the peace equilibrium of the world. In doing so, the Security Council after identifying the breach, has instructed Iran to cease it's all nuclear proper enrichment programs, and since the orders of the Security Council are stern and strong, Iran has to follow the policy or else have to place the embargo on different field and markets which will hurt the economic stability and growth of the country.

In obligating Iran, the Security Council has passed the orders to stop all enrichment programs, pursued currently or in the past, along with preparation of the uranium ore that acts as the reacting element in the enrichment program and the restriction to install the centrifuges. Also under the new orders, Iran has to suspend its footprints on Heavy water projects and the construction of heavy water reactors, since these reactors could produce Plutonium, an alternate of uranium. (Paivar, 2014).All these actions are taken in a response to the breach found on the side of Iran for preparing the Nuclear Plant in Tehran under secret project.

Why Iran Faces Sanctions?

The NFT has certain guiltiness and rules which obligates each member to control its course of actions.In doing so, each member as a part of Non-Proliferation Treaty has to refrain and cease any nuclear activity due to peace keeping equilibrium. When Iran entered, signed the NPT agreement, it took an oath to never practice any nuclear activation and enrichment activities in the future. However, in 1976, under the leadership of Shah Muhammad Reza Pahlavi, the change in domestic policies of Iran raised the concerns of the US government as the change in domestic policies outlined the enrichment program, which is a breach of the agreement and led to the sanction in order to control the activity (Levs, 2012).The first player that imposed sanctions on Iran was USA.It imposed the very first sanction on Iran in 1976, on trade, which increased the cost of goods and technology and energy in Iran. (Sabatini, 2010).Since, acquiring technology and cost of goods makes the enrichment costlier, making Iran to cease the enrichment activity in near future. (Peterson, 2015), (the trumpet, 2006).

US Prohibitions on Iran

The US prohibitions cover a broad sector of Iran state that includes internal and external affairs of the country including control over nuclear proliferation, human right, financial markets, and trade.These prohibitions resulted in long term economic downturns and deterioration of economic wealth...................

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