US and Iran Reach Agreement: Has the Deal Come into Effect for Oil Markets? Bloomberg

Iran has reached an agreement with the US on easing sanctions. This was reported by Bloomberg, citing anonymous senior US officials.

“While Iran and the US are cautiously engaging in diplomatic efforts, the prospects of a return to the expired nuclear agreement remain distant. However, the contract is already in effect for the global oil markets,” the agency writes.

It is noted that the easing of sanctions will allow Iran to compete with Russia in Asian oil markets. As a result, Iranian oil production has reached 3 million barrels per day, while its supplies to China have hit record numbers in a decade (1.5 million barrels per day).

The agency reports that this has also been done in an effort to curb rising fuel prices in the US.