Iran’s election will disrupt oil markets

Iran election is affecting not just Iran, but also its relationship with the west, and ultimately, crude oil prices.

Iran May 19 presidential election could reverberate around the world,

Incumbent president Hassan Rouhani won in 2013 on a platform of moderation and promoting dialogue with the west. Ultimately, that controversial gamble paid off, with the signing of the 2015 nuclear deal with the p5+1 nations (the five permanent members of the un security council – china, France, Russia, the united kingdom, the us – plus Germany). Crucially, the deal led to a thaw in relations between Iran and the international community, and it also led to a revival in Iran’s oil industry the deal put restrictions on Iran’s nuclear program in exchange for a lifting of sanctions.

Iran had more than 40 million barrels of oil stored in tankers in the Persian Gulf, which were blocked from export. After the deal, Iran slowly whittled away at that stockpile, allowing it to boost exports throughout 2016. Iran also began the process of courting international oil companies for new investment in some very attractive oil and gas fields.

Iran May 19 presidential election could reverberate around the world,

Incumbent president Hassan Rouhani won in 2013 on a platform of moderation and promoting dialogue with the west. Ultimately, that controversial gamble paid off, with the signing of the 2015 nuclear deal with the p5+1 nations (the five permanent members of the un security council – china, France, Russia, the united kingdom, the us – plus Germany). Crucially, the deal led to a thaw in relations between Iran and the international community, and it also led to a revival in Iran’s oil industry the deal put restrictions on Iran’s nuclear program in exchange for a lifting of sanctions.

Iran had more than 40 million barrels of oil stored in tankers in the Persian Gulf, which were blocked from export. After the deal, Iran slowly whittled away at that stockpile, allowing it to boost exports throughout 2016. Iran also began the process of courting international oil companies for new investment in some very attractive oil and gas fields.

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