March 20, 2015 | Quote

More Iran Oil May Flow Within Months of Deal, Officials Say

World powers have offered to suspend U.S. and European restrictions on Iranian oil exports, but only if the Islamic Republic accepts strict limits on its nuclear program for at least a decade, according to American and European officials.

The offer to begin lifting some sanctions within months of a deal comes amid the effort in Lausanne, Switzerland to reach the framework of an agreement by the end of the month, with the outcome still in doubt.

“Once strictures are loosened, with so many international companies positioning to get back into Iran, it will be very difficult to persuade these companies to leave again,” said Mark Dubowitz of the Foundation for Defense of Democracies, which has advised Congress on sanctions and advocates adding more penalties.

Amid a worldwide glut of crude, a deal permitting more Iranian exports to Asia and Europe could drive prices even lower. If Iranian oil returned to the market, two officials said, the price of crude would drop another $10 a barrel. Brent crude, the international benchmark, has fallen 12 percent this month to $54.43 a barrel on the London-based ICE Futures Europe exchange as of 4:00 p.m. Thursday in New York.

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Issues:

Iran Iran Sanctions