Implementation of the interim deal with Iran, which freezes the country’s nuclear enrichment in exchange for limited sanctions relief, began in January. As a result, we are witnessing a substantial shift in diplomatic relations between Iran and its regional neighbours – some positive, some not. This deal marks a significant step for the international non-proliferation regime, but will it achieve the trust and confidence-building goals intended? As the US and Iran face increasing domestic pushback on the terms of the agreement, questions remain on the interim deal’s impact on relations in the region and abroad, and the effect these relations may have on the prospects of coming to a full comprehensive follow-up agreement between Iran and the P5+1 countries.

If Iran and the P5+1 succeed in negotiating a robust agreement on the nuclear issue, then Iran will be less preoccupied with rebalancing its relationship with antagonistic western powers and its role in the Middle East and the wider region has scope for developing in many new directions. This briefing looks ahead to a post-agreement environment and assesses where Iran might chose to concentrate its resources. A key question is whether it will work to build better links with the US and selected European states or whether it will be more interested in the BRIC and other states, not least Turkey. Its choice will be influenced strongly by domestic politics and the urgent need for a more stable region.