The lifting of nuclear-related sanctions on Iran will be “a good day for the world”, its foreign minister, Mohammad Javad Zarif, has said as leaders gather in Vienna to complete the agreement.

“It’s a good day for the people of Iran … and also a good day for the region. The sanctions will be lifted today,” he said on Saturday after arriving in Austria’s capital, according to the ISNA news agency. His comments came after diplomatic sources said the UN nuclear watchdog is likely to say Iran has complied with last July’s landmark agreement with world powers on its atomic programme.

Zarif, who led Iran in nuclear talks with the US, Britain, China, France, Russia and Germany, said the deal had removed from the Middle East “the shadow of a baseless confrontation”.

“It proved that we can solve important problems through diplomacy, not threats and pressure, and thus today is definitely an important day,” he said.

The International Atomic Energy Agency report will allow Zarif and his US and EU counterparts, John Kerry and Federica Mogherini, to announce in Vienna that the deal can enter into force, the diplomatic sources said. Under the 14 July deal, Iran agreed to significantly scale down key areas of its nuclear activities in exchange for relief from crippling sanctions, notably on Tehran’s oil exports.

These steps, combined with tighter IAEA inspections, have extended to at least one year the time Iran would need to make enough fissile material for one nuclear bomb. Previously it was just a few months. Iran has always denied seeking an atomic weapon, saying its activities are only for peaceful purposes, such as power generation and medical research.

Kerry was expected to arrive in Vienna on Saturday for the talks ahead of the “implementation day” ending sanctions.



In an email statement, a US state department spokesperson said: “All parties have continued making steady progress towards implementation day of the JCPOA (joint comprehensive plan of action), which will ensure the exclusively peaceful nature of Iran’s nuclear programme.”

The mood in Tehran is upbeat but many remain cautious as the US and the EU prepare to dismantle an intricate network of punitive measures against Iran, reconnecting it to the global economy after 10 years of isolation and unlocking billions of dollars worth of trade.

The west has already put in place the legislation for lifting sanctions. Iranian banks will re-establish connections with the European financial system and private firms will be able to pursue business opportunities without fear of western punishment.

Iran will also be able to add an extra 500,000 barrels a day to its crude exports, affecting the global oil market which is already oversupplied. Iran is expected to add the same amount again within six months, bringing its crude exports back to pre-sanctions level.

European companies will be able to resume business with Iran but American companies are still hampered by the existing terrorism, human rights and ballistic missiles-related sanctions that will remain in place. Foreign companies dealing with Iran will no longer be punished by the US.

Iran’s banking sector, previously cut off from the outside world, will gain access to Swift services, which facilitate international transactions. Around $30bn (£21bn) of a total of $100bn in frozen assets will be released to Iran.

“Implementation day is a demonstration of how persistent, high-level engagement is a critical ingredient for successful policies between Iran and the international community,” said Reza Marashi, of the National Iranian American Council, who followed the nuclear talks closely.

He said direct diplomacy between Kerry and Zarif “was the linchpin of this peaceful outcome. In the absence of US-Iran dialogue, accidents like [the recent capture of US sailors] could have quickly escalated. Thanks to the Iran nuclear deal, a sustained diplomatic channel now exists to de-escalate. The entire Middle East will benefit if this is the new normal.”

Hossein Rassam, a London-based Iranian analyst, said the lifting of sanctions would bring two years of intensive diplomacy to fruition. “Significance of the post-implemenation day period is that sectors of the Iranian economy, such as trade and oil, can, after many years, experience relative normalcy,” he said.

John Forrest, head of international trade in London at the law firm DLA Piper, said “as a significant and diverse emerging market, Iran presents substantial opportunities for European businesses”, particularly those in the energy sector, manufacturing, retail, consumer goods, food and drink, and financial institutions and services.

“From a practical perspective, it remains to be seen whether EU sanctions relief will be held back should banks continue to take a cautious approach to processing Iranian payment transactions,” he said.

Forrest also said continuing human rights and terrorism-related sanctions in the US would have an effect. “Whilst the EU piece of the puzzle is clear, as it has already published relevant legislation amending existing sanctions measures to pave the way for early EU termination, there remains a lack of clarity with regards to the US.”