Oil prices fall after Iran nuclear deal

Oil prices have fallen 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 was recently down 64 cents at $110.41 a barrel.

It had fallen to as low as $108.05 earlier in the trading session. Meanwhile, US light sweet crude was down $1.01 to $93.83, having fallen as low as $93.08.

Iran could be a big player in the global energy business. But sanctions have made it very difficult to invest in expanding and modernising the sector.

Oil production has never returned to the peak it reached in 1974. Output collapsed in the aftermath of the Islamic revolution at the end of that decade. It has partly recovered but remains less than half that earlier high.

In the gas industry, Iran has the world's largest proven reserves (according to BP's estimates), yet in some years it imports more than it exports. It uses gas for electricity and winter heating.

If the Geneva deal turns out to be the prelude to a wider and lasting agreement, Iran could become an even more important factor in world energy.

BBC