Iran says its nuclear deal with the United States and the European Union has made it easier and cheaper to trade oil due to an easement of insurance restrictions for purchasing countries. According to Reuters, the deal between Iran and six other countries offers partial relief from a shipping insurance ban that has forced some counties to reduce or avoid imports from the Middle Eastern nation.
Although the deal does not put an end to US or EU sanctions, it does allow existing Iran crude oil customers to increase or resume shipments altered or reduced in light of the insurance ban.
“…Iran's crude oil exports will not decline and our customers will be able to purchase oil from Iran without any anxiety and they will not have to look for alternatives,” said Ali Majedi, deputy minister for international affairs and trading, discussing the effects of the deal.
Initially, the Iran deal led to a drop in oil prices, but that loss was regained in early trading later. Investors initially buoyed by the news later admitted the deal would see no immediate increases in oil supplies.
The deal, as it stands, is set for a six-month duration, at which time the details will be reviewed.