Loading the player...

What are the 'P5+1 Countries'

The P5+1 countries are a group of world powers who are working on the Iran Nuclear Deal. The countries include the five permanent members of the United Nations security council with the addition of Germany. The U.N. security council consist of China, France, Russia, the United Kingdom and the United States. The agreement is also known as the Joint Comprehensive Plan of Action (JCPOA).

BREAKING DOWN 'P5+1 Countries'

The P5+1 countries have been working to neutralize the Islamic Republic of Iran's nuclear activity since the discovery that Iran had an operational uranium enrichment facility in 2002. The learning of this information, combined with the existence of a heavy-water facility led the International Atomic Energy Agency (IAEA) to begin an investigation into Iran’s nuclear actives in 2003. The original group, called the EU-3, consisted of representatives from France, Germany and the United Kingdom. In 2006, China, Russia, and the United States joined the pact forming the P5+1. 

The creation of the P5+1 came about when an IAEA study concluded that Iran failed to uphold their end of the Nuclear Non-Proliferation Treaty. New negotiations began in 2013 and were formalized and signed in 2015. The United Nations (UN) passed the first of many resolutions which imposed sanctions on Iran regarding its nuclear development.

The United States has levied several sanctions on Iran since the 1979 revolution. Some of these sanctions continue to relate to Iran’s nuclear programs. As this New York Times archive shows, the U.S. and Iran have a long history.

The Most Recent P5+1 Agreement

In November 2013, the P5+1 and Iran reached a preliminary agreement with regards to Iran's ongoing nuclear programs. Two years later, the P5+1 countries and Iran announced the initial details of an understanding which would allow Iran to enrich uranium to generate electricity. 

The 2015 agreement contained:

  • Reduction of enriched uranium stockpiles allowing only 3.67% enrichment for research and civil use
  • Outlined and limited the conditions for research and development of uranium enrichment at the Natanz Fuel Enrichment Plant (FEP)
  • Limit the number of centrifuges which can operate
  • Require the modification of the Arak (IR-40) heavy-water facilities to produce only non-weapons grade plutonium
  • Convert the Fordow Fuel Enrichment Plant (FFEP) uranium enrichment center to research functions exclusively

The IAEA was also granted access for inspections of all non-military facilities, uranium mines, and suppliers. If Iran adhered to these conditions, then the lifting of nuclear weapons-related sanctions would occur.

P5+1 in the News

In March 2018, IAEA Director Yukiya Amano announced the certification of Iran implementing its commitments to the nuclear deal. However, not everyone agreed. The surfacing of evidence in 2018 has some stating that Iran is out of JCPOA compliance. This new information shows the Islamic Republic was hiding its continued research into the production of nuclearized weapons. Israeli Prime Minister Benjamin Netanyahu agreed.

On 30 April 2018, the United States and Israel announced their disagreement with Iran's non-disclosure to the IAEA. Under a month later, on May 8, 2018, U. S. President Trump announced the U.S. would withdraw from the P5+1 group. He based this decision on the lack of response from P5+1 members to strengthen the current sanctions on Tehran. Trump said the U.S. would replace previous sanctions, removed due to the Joint Comprehensive Plan of Action agreement.

The weakened Accord continues in place. EU representatives say they will continue implementation as long as Iran adheres to the agreement. However, the other signatories have yet to instigate a new plan of action. The Islamic Republic of Iran say they will continue to follow the JCPOA rules and in their view, the agreement continues with the remaining members. 

Understanding the far-reaching impacts of the weakening of the Joint Comprehensive Plan of Action is still ongoing. Iran and the U.S. have resorted to verbal challenges of military action at one another.

According to World Bank data from 2017, the Islamic Republic of Iran experiences a gross domestic product (GDP) growth of 4.3% per year with an 8.1% annual inflation deflator. The decline in the Iranian rial (IRR) exchange rate continues today as global pressures and disagreements on the Joint Comprehensive Plan of Action (JCPOA), or the Iran nuclear deal, continue to erode the currency.

RELATED TERMS
  1. IRR (Iranian Rial)

    IRR is the abbreviation for the national currency of the Islamic ...
  2. Nuclear Hazards Clause

    Nuclear Hazards Clause is property insurance policy language ...
  3. Islamic Financial Services Board ...

    The Islamic Financial Services Board sets global standards and ...
  4. 1979 Energy Crisis

    The 1979 energy crisis in the U.S. was an event of widespread ...
  5. Whoops

    Whoops is slang for the Washington Public Power Supply System ...
  6. Article 50

    Article 50 is the clause of the European Union treaty that outlines ...
Related Articles
  1. Investing

    The Dummies' Guide To The Iran Nuclear Deal

    The ever-evolving Iran nuclear deal.
  2. Investing

    Who Benefits from Lifting Iran Sanctions? (TOT, RDS.B)

    There are multiple parties that will benefit from the lifting of Iranian sanctions and the return of the country to the international community.
  3. Insights

    Who Are Iran's Biggest Allies, and Why?

    Learn about the alignments, largely based on shared anti-U.S. interests, that Iran maintains with the countries of Lebanon, Russia and Venezuela.
  4. Investing

    Total Halts $2B Iran Project

    Total announced suspension of its South Pars gas field project in Iran in a decision attributed to the US's pulling out of the Iran nuclear deal
  5. Investing

    Companies Investing in the New Iran (BA,BP)

    Which businesses are eyeing the large and untapped Iranian market? Investopedia takes a look
  6. Insights

    3 Reasons Iran is Important in 2016

    Learn about how the global economy and Iran will be affected by the recently lifted trade embargo and sanctions from Iran, and what it means for 2016.
  7. Investing

    Calculating Iran's Possible Credit Rating

    Iran's central bank deputy governor says the country could be in line to receive a credit rating. IMF economic data show Iran could be rated 'BB-' or 'B+'
  8. Investing

    How Much of a Difference Will Iran Make to Oil Prices?

    Iran's re-entry into the energy markets has the potential to further depress oil prices. Or, does it?
  9. Investing

    The Economic Reasons Behind Nuclear Power

    Despite the risks, investments in nuclear energy can pay off in the form of energy independence.
  10. Trading

    Defense Stocks Back in Play After Iran Retreat

    U.S. defense stocks bounced off multi-month lows in reaction to the busted Iran nuclear deal and could rally back to bull market highs.
RELATED FAQS
  1. What are the main substitutes for oil and gas energy?

    Read about some of the major substitute sources of energy that compete with fossil fuels -- oil, natural gas and coal -- ... Read Answer >>
  2. What are the differences between comprehensive income and other comprehensive income?

    Learn what the accounting terms "comprehensive income" and "other comprehensive income" can tell an investor's financial ... Read Answer >>
  3. What Items Count as Other Comprehensive Income?

    Learn about some of the more common examples of other comprehensive income, or OCI, and find out how OCI differs from standard ... Read Answer >>
  4. What are the primary advantages of forming a joint venture?

    Understand what the advantages of a joint venture are and discover what make this business strategy a good alternative to ... Read Answer >>
  5. Do joint ventures need an exit strategy?

    Understand why an exit strategy is important for a business partnership such as a joint venture, and learn the options partners ... Read Answer >>
  6. What economic indicators are most used when forecasting an exchange rate?

    Discover what economic indicators are most widely used to forecast a country’s exchange rate and how various factors influence ... Read Answer >>
Trading Center