The second round of talks in Geneva ended on Sunday between P 5+1 (US, Russia, China, UK, France and Germany) and Iran crystallizing a deal. Six world powers agreed on a historic nuclear deal with Iran, as the latter agreed to curb its nuclear program for the next six months in exchange for limited sanctions relief. Media televised the cheerful faces of Western and Iran’s diplomats shaking hands in friendship. However, still it is a long way to move ahead as there is always possibility of relapse or overturn due to presence of individuals and groups who are willing to sabotage any possible relation, but for now at least it seems that the frozen bilateral relationship has got a crack.

Under the very harsh economic sanctions, Iran has decided to move back from it is previous stance. From the very revelation of the program, it has remained as a kingpin of tense relationship. With the rise of ex-president Mr. Mahmoud Ahmadinejad, the situation became worse and very complicated. His rhetoric about Israel and several controversial issues led to development of a negative prestige of the country to world. Despite the constant rejection of allegation that Tehran was following a concrete scheme to develop nuclear weapons, the international community always doubted its intention. Instead of talking seriously about the nuclear issue, Mr. Ahmadinejad was putting issues on the table that Western negotiators had least interest in.

Therefore, during his presidency, the United Nations approved consecutive resolutions against the country and even China and Russia that have close relation with Iran decided to side with US and European countries.

So, seemingly now Tehran officials figured out that the country cannot be ruled merely by chanting slogans even without paying attention to global structure. The backbreaking economic sanctions have led to decline of public budget reserves. The Iranian authorities reached to conclusion that in the long term, the effect of economic sanctions would be so huge that the country’s economy may break down. Thus, they decided to bring more flexibility to their stance and adopt the better option of negotiation.

Under the deal that was signed in Sunday, Tehran will limit uranium enrichment – the area that raises most suspicions over Iran’s alleged nuclear weapons drive – to low levels that can only be used for civilian energy purposes. It will neutralize its stockpile of uranium enriched to higher 20% purity – very close to weapons-grade – within six months, US Secretary of State John Kerry said in Geneva after clinching the deal. Under the accord, Iran will not add to its stockpile of low-enriched uranium, nor install more centrifuges or commission the Arak heavy-water reactor, which could produce plutonium fissile material.

Iran is suffering tightened economic sanctions which have cost Iran $120 billion losses in revenue since the U.S. and European Union imposed strict penalties on energy, ports, insurance, shipping, banking and other Iran-related transactions in 2010, according to U.S. Treasury estimates. While almost all U.S. trade with Iran has been banned for decades, other than food and medical supplies, U.S. restrictions now apply to other countries that trade with the Islamic Republic.

The agreement won’t loosen financial restrictions that affect most Iranian banks and make it almost impossible for the government to access the global financial system, according to U.S. officials. While Iran will be allowed to buy and sell precious metals, including gold, it will be barred from accepting them as payment for oil or any other sanctioned transaction, according to the officials, who asked not to be identified discussing the details. Before the U.S. ban on all Iranian trade in gold was imposed in July, the country’s imports of the precious metal rose to a high of more than $1.5 billion a month in mid-2012 as Iranians bought gold to safeguard against inflation and its declining currency, the riyal.

According to US administration, Iran will get as much as $7 billion in relief from economic sanctions over six months under the first-step agreement reached in Geneva. In return for Iran limiting its nuclear program, the interim agreement provides for the release of $4.2 billion in frozen oil assets and will let Iran continue exporting oil at current levels, rather than forcing continued reductions by buyers, as would be required under current law, according to a White House statement. The administration calculates the lifting of auto sanctions could let Iran earn $500 million in exports. Iran’s customs data show $519 million in auto exports in the year ending March 2012, before sanctions were imposed.

The Iran-West deal is great breakthrough pledging economic riches to Iran, given that Iran abides the bindings of the deal and get sanctions loosened. The accord is groundwork as it is meant to lay the foundations for a more permanent, comprehensive agreement later this year.