Global oil prices dropped and European shares rose in early trading Monday morning after Iran agreed a deal to curb some of its nuclear activities in return for an easing of international sanctions.
Iran holds the world’s fourth-largest oil reserves, but its exports have been hurt by the tough sanctions against it.
Though Iran will not be allowed to increase its oil sales for six months, the deal has eased tensions in the Middle East – a key oil-producing area.
Brent crude fell more than 2% in early Asian trade on Monday.
It dropped by $2.42 to $108.63 per barrel, while US light sweet crude fell 84 cents to $93.64 per barrel.
Fuel-intensive companies, such as airlines and travel firms, received a boost on the stock markets as a result.
International Airlines Group, the owner of British Airways and Iberia, was up 2.87% in lunchtime trading, while Air France KLM rose 3.11%. Travel operator Thomas Cook lifted 3.68%.
World powers suspect Iran’s nuclear programme is secretly aimed at developing a nuclear bomb – a charge Iran has consistently denied.
In an attempt to force Tehran to curb its programme, the US and other leading economies have imposed a series of tough sanctions aimed at Iran’s oil exports – a key driver of its economy.
[youtube XxOe0cx49dQ 650]