Oil prices drop after Iran nuke deal

PanARMENIAN.Net - Oil prices have fallen after Iran agreed a deal to curb some of its nuclear activities in return for easing of international sanctions against it, according to BBC News.

Iran holds the world's fourth-largest oil reserves but its exports have been hurt by the tough sanctions. Though Iran will not be allowed to increase its oil sales for six months, the deal has eased tensions in the Middle East - a key oil-producing area.

Brent crude fell more than 2% in early Asian trade on Monday, November 25. It dropped by $2.42 to $108.63 per barrel, while U.S. light sweet crude fell 84 cents to $93.64 per barrel.

"There are a lot of sanctions that have been eased, which will allow Iran to slowly re-enter the global economy," Jonathan Barratt, chief economist at Barratt's Bulletin told the BBC.

"And as for oil - it's a just a six-month waiting period. If they tick all the boxes during that time they will be back in that sector as well."