Oil Prices Drop On Iranian Nuclear Deal

Oil prices fell today (November 25th) after Iran confirmed it will curb its nuclear activities.

Tensions in the Middle East are thought to have eased as a result of the agreement, which saw brent crude drop by two per cent in Asian trading, falling by $2.42 (£1.49) to $108.63 per barrel.

Jonathan Barratt, chief economist at Barratt's Bulletin, told the BBC that a lot of sanctions have been eased in the deal.

"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," he said.

Iran has been told that it cannot increase its oil sales for six months. The country has the world's fourth-largest oil reserves.

Ben le Brun, a market analyst at OptionsXpress in Sydney, explained that changes to oil prices could be a "kneejerk" reaction from the market.

Oil prices were also down recently after rumours circulated that the Federal Reserve is ready to start tapering its quantitative easing programme.

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