Iran deal good for emerging Asia

Iran has secured a nuclear accord with major world powers which will keep an Iranian Nuclear bomb at bay in return for sanctions removal.

Deal is yet to be passed by US congress, however US president Barrack Obama has announced that he will veto any blockage by congress to secure the deal.

This nuclear deal is going to be beneficial not only for Iran but for a range of emerging economies who are very dependent on oil price movement.

Increased supply from Iran, which is expected to grow by at least 1 million barrels in next 12 months is definitely weigh on Crude price. The deal might even keep prices depressed in 2016.

Lower oil price will be beneficial for all those oil importing emerging economies, suffering from high current account deficit.

However Iran deal would be extra sweet for Asia.

Asia will be the likely battleground, where traditional rivals, Saudi Arabia and Iran will fight it out. Both the country will try to gain as much share as possible. Which means additional discounts.

Expect Iran to be more aggressive in its bid to return to market.

However all will depend on how swiftly and effectively sanctions are removed.

Brent crude is currently trading at $57.5/barrel.