Iran done deal weighs on oil, time to buy IRR

Six major world powers (US, UK, France, Russia, Japan and Germany) sealed a nuclear deal with Iran, which is at one hand likely to curb Iran's nuclear ambition for decades and free up Iranian crude in already oversupplied market.

This Tuesday stands as a historic moment as Iran is likely to return to world market, after decades of isolation. Iran's oil exports, which has almost halved since 2011, is likely to bounce back shortly.

Details of the deal - including the crucial timings and scope of sanctions relief for Iran, plus the range of access international nuclear inspectors will be granted over Iran's sensitive nuclear sites - are expected to be announced later on today.

Iranian Rial (IRR) might appreciate against dollar, if sanctions are removed, which will open up possibilities of large foreign investments in its oil and gas sector.

Iranian oil minister says that he is confident that Iran will be able to double its export volume by next year. Analysts estimate Iran might be able to increase exports as much as 0.8 million barrels per day this year alone.

Crude is taking heavy hit over the announcement. WTI crude is currently trading at $51.1/barrel, down 2% so far, while Brent is trading at $56.7/barrel, down 1.9% so far.