After relief of nuclear-related sanctions, Iran will now resume its crude oil exports and will have access to previously frozen assets (Reuters). Iranian crude oil reserves are the fourth largest in the world, with its natural gas reserves as first largest (Chicago Tribune). The International Energy Agency’s reduced estimates for global oil demand due to China’s weakening economic expansion indicate the oil market “could drown in oversupply” (Financial Post). The price of oil sank to a low of $28.46, its lowest since September 2003 (Reuters).
Iran’s entry into the global economy is being met with skepticism, especially in the United States where the stock market had its toughest day in months (Los Angeles Times). Countries such as Israel and Saudi Arabia view Iran’s reentry into the global markets as threatening and attempted to block the nuclear deal between Iran and the UN Security Council as a means to delay its entry (The Nation). Companies are seeking sales in Iran with Daimler Trucks announcing the restart of sales and Airbus securing an order from Iran Air of 114 aircraft (BBC News). The World Bank and the Institute of International Finance have predicted a growth of 6% or more for Iran’s economy after lifting of sanctions (CNN Money).
Tags: Global Economy, Iran, Sanctions, Oil, Mumtaz