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Full reversal of Iran nuclear deal is not so certain: Analyst

The intention of President-elect Donald Trump to put an end to a landmark deal with Iran may not happen given that it would need the approval of other countries, an analyst told CNBC.

During his campaign, Trump pledged to scrap a deal made between President Barack Obama's administration and the Iranian government that lifts sanctions in exchange for restrictions in Iran's nuclear programme. But a full-reversal of the deal seems difficult.

"We still believe that we aren't going to see a full reversal of the deal with Iran. It's not just a US-Iran deal," Wolfango Piccoli, co-president at Teneo Intelligence, told CNBC on Wednesday.

"This is a P5 deal so there's only so much damage that can be done on the front by a new US president," he added.


A gas flare on an oil production platform is seen alongside an Iranian flag in the Gulf.
Raheb Homavandi | Reuters

The P5 refers to the permanent members of the United Nations Security Council, namely the United States, France, Britain, China and Russia. Germany was also party to the agreement that basically aims to prevent Iran from getting a nuclear weapon.

In exchange for restricting its nuclear programme, Iran is able to export oil and gas, develop its energy sector and conduct business more freely. For example, Iran ordered 73 long-haul and 45 medium-haul planes from the European aircraft maker Airbus once the agreement was implemented.

President-elect Trump has not specified whether he will pursue his campaign-pledge once he takes office, but the current U.S. administration is looking into strengthening the deal. According to Reuters, the United States issued a second licence to Airbusto sell commercial planes to Iran Air on Tuesday.

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