IRAN

The Iran Nuclear Deal And Oil Markets

By Professor Paul Stevens

The 14 July deal with Iran over its nuclear program has generated much speculation over the potential impact on oil markets. There are three issues to consider: sentiment in the paper markets; short-term physical supply impacts; and medium to longer-term supply impacts if and when Iranian oil production ramps up.

As soon as the deal was confirmed, oil prices immediately fell a couple of dollars as the paper markets...