This article discusses the nuclear program agreement reached between the P5+1 group of nations and the Islamic Republic of Iran. The article sees the agreement as a historic achievement that may well have major effects in the region. The paper deals with the main features of the agreement and the circumstances that led to it, and enumerates its likely effects on the region and especially on the Palestine-Israel conflict, as well as Israel’s frustration with the Iranian nuclear program and its threats to strike it. The paper puts forth the possibility that the agreement will lead to positive results and cause stability in the region and lead to real improvement in Iranian-Gulf relations, particularly with Saudi Arabia, as well as resolve the problems of Shia minorities in some Gulf states.