Iran sanctions likely to get lifted this month

Iran sanctions removal that has been expected for long and supposed to bring Iranian could into the market is likely to get done this month. Sanctions could go off, as early as next week according to a report from Bloomberg.

International Atomic Energy Agency is expected to release report today, on its assessment of Iran's nuclear program and the report is likely to show that Iran has fulfilled its part of the bargain on nuclear accord reached last July with the world powers.

However, removal of sanctions may not smoothen its relations with US and non-nuclear sanctions are likely to remain. Moreover, sanctions can be re-imposed if Iran violates agreement.

It would not only mean Iranian crude in the market but it would also free up Iranian cash trapped into overseas account, which is as much as $50 billion.

Oil which is already battered to less than $30/barrel, down 70% from its 2014 peak, could take further dive on the news.

Iran is likely to receive significant foreign investments going ahead, despite lower crude price as cost of production is low.