Oil prices plunge after Iran nuclear deal
November 25, 2013: 5:08 AM ET
Iran has reached a deal over its nuclear program that could lead to more oil exports from the country.
Oil prices tumbled on Monday after a groundbreaking agreement aimed at curbing Iran's nuclear program eased tensions in the region and raised the prospect of more oil exports from the country.
The preliminary accord, which was struck between Iran and six world powers, offers the Middle East nation $7 billion in relief from economic sanctions.
Iran, a major global oil producer, has seen oil sales slump by 60% from previous sanctions since the beginning of 2012. That has led to an $80 billion loss in revenue, according to the U.S. government.
Although the new deal won't allow Iran to increase oil sales for six months, it could still pave the way for more supplies to be released to the global market.
Analyst David R. Kotok of Cumberland Advisors said the agreement has helped reduce political risk, and will push benchmark oil prices lower in Europe and the U.S.
Related story: U.S. to seize Manhattan skyscraper secretly owned by Iran
Brent crude for January delivery fell 2.5% in London on Monday, losing $2.4 to $108.66 per barrel. Light crude in New York lost $1.51 to $93.33 a barrel.
World stock markets were also buoyed by the Iran deal as cheaper energy prices is a positive for the global economy.
Germany's DAX index rose 0.7% in early European trading, while the FTSE added 0.4% in London.
In Asia, Japan's Nikkei closed up 1.5% and Australia's ASX All Ordinaries put on 0.3%. 
First Published: November 25, 2013: 5:08 AM ET
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