Investing.com - Iran reached a groundbreaking deal with world powers on Sunday, agreeing to curtail some of its nuclear activities in return for approximately USD7 billion in sanctions relief.
The agreement between Iran and the U.S., Russia, China, France, the U.K. and Germany requires Tehran to restrict central parts of its nuclear program in exchange for the easing of some economic sanctions.
Under the terms of the agreement, Iran will stop enriching uranium beyond 5%, and neutralize its stockpile of uranium enriched beyond this point. Iran will also give greater access to nuclear inspectors in exchange for no new sanctions for six months.
Iran will also receive sanctions relief worth approximately USD7 billion in trade on oil, auto and airplane parts, gold and precious metals for six months.
The interim deal, which is reversible, will last for six months to allow for negotiations aimed at reaching a permanent agreement.
World powers have accused Iran of using its nuclear program to secretly develop nuclear weapons, an assertion it has consistently denied.
In a nationwide broadcast on Sunday, Iranian President Hassan Rouhani repeated that his country would never seek a nuclear weapon. "No matter what interpretations are given, Iran's right to enrichment has been recognized," he said.
U.S. President Barack Obama welcomed the deal, saying key parts of Iran’s nuclear program would be rolled back.
However, Israeli Prime Minister Benjamin Netanyahu called the deal a "historic mistake" on Sunday and added that his country would not be bound by the agreement.
U.S. and Brent oil futures tumbled on Monday, with light sweet crude futures for delivery in January down 1.45% on the New York Mercantile Exchange to trade at USD93.48 a barrel.
On the ICE Futures Exchange in London, Brent oil futures for January delivery dropped 2.05% to USD108.77 a barrel.
Meanwhile gold futures for February delivery traded at USD1,232.15 a troy ounce, down 1%.
The agreement between Iran and the U.S., Russia, China, France, the U.K. and Germany requires Tehran to restrict central parts of its nuclear program in exchange for the easing of some economic sanctions.
Under the terms of the agreement, Iran will stop enriching uranium beyond 5%, and neutralize its stockpile of uranium enriched beyond this point. Iran will also give greater access to nuclear inspectors in exchange for no new sanctions for six months.
Iran will also receive sanctions relief worth approximately USD7 billion in trade on oil, auto and airplane parts, gold and precious metals for six months.
The interim deal, which is reversible, will last for six months to allow for negotiations aimed at reaching a permanent agreement.
World powers have accused Iran of using its nuclear program to secretly develop nuclear weapons, an assertion it has consistently denied.
In a nationwide broadcast on Sunday, Iranian President Hassan Rouhani repeated that his country would never seek a nuclear weapon. "No matter what interpretations are given, Iran's right to enrichment has been recognized," he said.
U.S. President Barack Obama welcomed the deal, saying key parts of Iran’s nuclear program would be rolled back.
However, Israeli Prime Minister Benjamin Netanyahu called the deal a "historic mistake" on Sunday and added that his country would not be bound by the agreement.
U.S. and Brent oil futures tumbled on Monday, with light sweet crude futures for delivery in January down 1.45% on the New York Mercantile Exchange to trade at USD93.48 a barrel.
On the ICE Futures Exchange in London, Brent oil futures for January delivery dropped 2.05% to USD108.77 a barrel.
Meanwhile gold futures for February delivery traded at USD1,232.15 a troy ounce, down 1%.