Donald Trump announces US withdrawal from nuclear deal with Iran, alienates European allies

The fallout of the announcement could be in the form of conflict in the West Asia region and soaring global oil prices.

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Despite strong opposition to such a move from several European allies, Donald Trump on Tuesday announced that the US will withdraw from an international nuclear deal with Iran which was signed in 2015. Many believe the decision could have widespread ramification for stability in West Asia and could lead to disruptions in global oil supplies.

The 10-year deal signed in 2015 between Iran and the US and several of its European allies had sought to restrict the former's ability to develop its nuclear program and prevent it from possibly making an atomic bomb. Trump though repeatedly claimed that the deal was not enough because of a number of reasons including addressing Iran's ballistic missile program and its nuclear endeavours beyond 2025.

"I am announcing that the United States will withdraw from the Iran nuclear deal. We will be instituting the highest level of economic sanctions. This was a horrible, one-sided deal. It never did bring peace and never will. It is an embarrassment for the US," he said at the White House.

Statement on the Iran Nuclear Deal: https://t.co/O3SpryCKkc

— Donald J. Trump (@realDonaldTrump) May 8, 2018

Iran has already refused to re-negotiate the deal and had promised retaliation if the US pulled out. The fallout of Tuesday's announcement could be in the form of conflict in the West Asia region and soaring global oil prices. According to Reuters, the possibility of renewed sanctions on Iran would make it difficult for the country to sell its oil internationally. The US markets, already jittery, are expected to dive following the decision.

It has been reported that European allies like UK, France and Germany - all signatories to the deal - tried hard to prevent the US from opting out. Now, security and diplomatic analysts believe these countries would have to assess their own position. China and Russia too had signed the deal and have been keeping a close watch on the developments.