• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 1 hour Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 1 hour In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 12 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 3 hours Continental Resource's Hamm (Trump Buddy) wants shale to cut production.Can't compete with peers. Stock will drop in half again.
  • 19 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 11 hours Movie Script: Epstein Guards Suspected Of Falsifying Logs
  • 1 day Will Uncle Sam Step Up and Cut Production
  • 12 hours US Petroleum Demand Strongest Since 2007
  • 1 day NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 2 days Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 2 days Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 52 days To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 12 mins Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
Alt Text

U.S. Sanctions Backfire, Lead To Boost In Russian Oil Exports

U.S. sanctions against Venezuela and…

Alt Text

Oil Spikes As US Delays Tariffs On Chinese Goods

Oil prices continued to rally…

Andy Tully

Andy Tully

Andy Tully is a veteran news reporter who is now the news editor for Oilprice.com

More Info

Premium Content

Historic Deal With Iran Opens Up Oil Industry

Iran and six major world powers have reached a historic deal that would limit Tehran’s nuclear program in exchange for a lifting of crippling economic sanctions on the Islamic Republic.

The participants at the talks were all smiles after the accord was reached on July 14, and the deal amounts to a thaw in relations between the United States and Iran for the first time since the Iranian Revolution in 1979.

The deal was not welcomed by everybody. Gulf Arab states, which practice Sunni Islam, also are concerned about Shi’a Iran’s rising influence in the Middle East. They have argued that releasing Iran from the sanctions would enrich Tehran to bankroll its sectarian allies in the region, including Lebanon, Syria and Yemen. Related: The Multi-Trillion Dollar Oil Market Swindle

In Jerusalem, Prime Minister Benjamin Netanyahu has long opposed any deal with Iran, saying it’s determined to destroy Israel and can’t be trusted to adhere to a deal that would deprive it of nuclear weapons. He called it a “historic mistake for the world.”

The oil industry, on the other hand, is eager to enter Iran and invest in its oil and gas reserves, which have largely been off limits for years. Iranian Deputy Oil Minister Mansour Moazami says his country’s exports of crude eventually could nearly double from the current 1.2 million barrels per day to 2.3 million barrels per day after sanctions are lifted.

But Gary Hufbauer of the Peterson Institute for International Relations, an economics think tank in Washington, says adding more crude to an already overflowing oil market could bring down the average global price of oil from the current level of between $50 and $60 per barrel to $35 per barrel.

Nevertheless, the agreement with Iran was a major coup for both President Obama and Iranian President Hassan Rouhani, who was elected two years ago having promised to be less doctrinaire, and more pragmatic than his predecessors, in order to free his country from its political and economic isolation. Related: Top 5 Oil Producing Countries Could See Production Peak This Year

Despite their success, even Obama and Rouhani face obstacles. Hard-liners in Iran, especially the leaders of the Revolutionary Guard, are sure to be a hard sell, given the decades of enmity between Tehran and Washington.

As for Obama, he must win over many Republicans in the U.S. Congress who believe any deal would only postpone Iran’s eventual development of a nuclear weapon.

After a 60-day review, Congress can reject the deal. Obama can veto the rejection, and overriding the veto would require the support of two thirds of all members. Even if Obama wins, he still must fight.

At the White House, the U.S. leader made an early-morning televised statement, broadcast to Iran as well as the United States, evidently aimed at persuading Congress and the American public that the agreement was “not built on trust. It is built on verification.” But he stressed, “I will veto any legislation that prevents the successful implementation of this deal.” Related: Methane Hydrates – Larger Energy Opportunity Than Shale?

Under the agreement, the six world powers – Britain, China, France, Russia and the United States, plus Germany – recognize Iran’s program is peaceful, not meant to create weapons, and that these nations respect Iran’s right to a nuclear technology in line with international standards. As a result, Iran may develop the technology under the guidance of the United Nations.

In Paris, French Prime Minister Manuel Valls said the deal made major progress in relieving the enmity between Iran and the West. “There’s been a tension with Iran for ten years or so,” he said. “Of course, it’s not over, but a very important step has been taken.”

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play