Optimism about Iran's entry into crude oil markets gathers momentum!

Optimism about Iran's entry into crude oil markets gathers momentum! 

Iranian nuclear deal and oil price

The relatively optimistic – and less confrontational - atmosphere at the talks involving the signatories to the JCPOA, 2015 Iran nuclear deal, have made analysts taking an intense interest in the development – once again.

Last week, against all odds, Amir Abdollahian, the Iranian Foreign Minister, said that Iran was in a hurry to revive the JCPOA, which in turn made the talks a focus that is worthy of attention.

A few days later, he even went further by saying that Iran was prepared for a prisoner swap with the US, saying it was a humanitarian issue that got nothing to do with the ongoing nuclear negotiations.

The palpable optimism about the revival of the JCPOA got yet another boost this week when Ayatollah Ali Khamenei, the Iranian Supreme Leader, said that Iran never wanted to make nuclear weapons; he made it clear Iran’s nuclear programme is for peaceful needs.

 

 

The direct intervention, none other than the spiritual head, carries a lot of weight in convincing a significant audience who naturally suspect the Iranian motives, especially in the West.

This is the first time that Iranian leader came out in no uncertain terms to clarify Iranian position regarding its nuclear programme. Iranian media, meanwhile, is upbeat about the prospect of reviving the deal in light of the latest developments, highlighting the positive impact on the Iranian economy.

It is clear the negotiations started rolling, having shifted the obstacles, boosted by backdoor negotiations at many different levels.

Of course, Iran needs cash to revive many vital sectors of its ailing economy. It may have felt that there would never be a better time to cash in on oil prices that the present time.

 The Sunni Arab nations in the region, meanwhile, are forming cohesive fronts in order to tackle emerging economic challenges, while taking Israel on board. Turkey’s desire to come under a common umbrella is a case in point.

In these circumstances, Iran may have felt it being at an acute disadvantage by choosing to exist in isolation while funding some Shia military organisations in the region.

Iran’s potential entry into the crude oil markets is no longer distant possibility. That’s why both the investors and traders keenly watch the political developments to gauge direction in which the winds of change head.

Location: VH28+64 Chah-e Chehel Gaz, Iran

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