Iran sanctions lifted: Brace for oil shakeup
The end of economic sanctions against Iran could shake up oil markets.
U.S. and European Union sanctions on Tehran were finally lifted on Saturday, restoring Iran’s access to world’s markets. Iran has been gearing up for this moment for months and could soon return to the top ranks of global oil producers.
Crude prices have been tanking for months, dropping to below $30 a barrel. A flood of new oil from Iran will likely push them even lower very soon.
“Iran is able quickly to pull oil out of storage and from tankers floating at sea … which it has an interest to do soon, since it is paying to store that oil,” said Brenda Shaffer, a professor at Georgetown University in Washington, D.C.