News / Economy

    Investor Sentiment Rises on Iran Nuclear Agreement

    Investor Sentiment Rises on Iran Nuclear Agreementi
    X
    November 26, 2013 5:56 AM
    Oil prices fell following the breakthrough accord in Geneva that limits or freezes parts of Iran's nuclear activities. Although the deal is preliminary, investors are optimistic it could eventually lead to an increase in the world’s oil supply. Mil Arcega has more.
    Investor Sentiment Rises on Iran Nuclear Agreement
    Oil prices fell following the breakthrough accord in Geneva that limits or freezes parts of Iran's nuclear activities. In exchange for curbing Iran’s nuclear program, the deal will ease some of the crippling economic sanctions that have caused massive inflation in Iran and weakened its currency. Although the deal is preliminary, analysts believe investors are optimistic it could eventually lead to an increase in the world’s oil supply.
     
    Oil futures dropped, the dollar traded higher and European airline stocks soared as the agreement between Iran and six world powers raised expectations for a thaw in tensions between Iran and the West.
     
    Although Iran’s output of crude oil is not expected to change soon, energy analyst Miswin Mahesh thinks the interim deal has eased global fears about the slowdown in oil production. 
     
    “It does help the oil market because otherwise, going into next year, we still have massive outages, Libya is off the market by 1.4 million barrels per day, Iraq is off the market by 300,000 barrels per day and on top of that, Iran is also reducing,” said Mahesh.
     
    As it stands, the agreement limits Iran’s oil exports to one million barrels per day, but market analyst Mike Ingram said that the hope is that the easing of sanctions will eventually make it easier for Iran to sell its oil on world markets.
     
    “Lower oil prices are good for global equity and at the economic level they are good for every single country outside of the Middle East and Nigeria,” said Ingram.
     
    Key stock indexes in the U.S. and Europe advanced on the news, while markets in Asia were mostly higher. While many industries would benefit from lower fuel prices, Nick Lewis at London Capital Group notes that other winners will include companies that stayed behind in Iran, even after economic sanctions were put in place, such as French carmakers.
     
    “Renault and Peugeot, Peugeot in particular, who had a presence in Iran prior to the restrictions that were put on in 2011, [will benefit],” said Lewis.
     
    Analysts say the easing of sanctions could help restart Iran’s automotive sector, allow petrochemical exports to expand and renew the country’s access to billions of dollars in trade.

    You May Like

    Taj Mahal Battles New Threat from Insects

    Swarms of insects are proliferating in the heavily contaminated waters of the Yamuna River, which flows behind the 17th century monument

    Self-doubt, Cultural Barriers Hinder Cambodian Women in Tech

    Longtime Cambodian tech observer Sok Sikieng says that although more women have joined profession in recent years, there remain significant factors hindering women from reaching tech potential

    Trans-Adriatic Pipeline to Boost European Energy Security

    $4.5 billion-pipeline will become operational in 2020 and will deliver gas from Azerbaijan’s Shah Deniz II field to southern Italy

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Vietnamese-American Youth Optimistic About Obama's Visit to Vietnami
    X
    Elizabeth Lee
    May 22, 2016 6:04 AM
    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video Vietnamese-American Youth Optimistic About Obama's Visit to Vietnam

    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video First-generation, Afghan-American Student Sets Sights on Basketball Glory

    Their parents are immigrants to the United States. They are kids who live between two worlds -- their parents' homeland and the U.S. For many of them, they feel most "American" at school. It can be tricky balancing both worlds. In this report, produced by Beth Mendelson, Arash Arabasadi tells us about one Afghan-American student who seems to be coping -- one shot at a time.
    Video

    Video Newest US Citizens, Writing the Next Great Chapter

    While universities across the United States honor their newest graduates this Friday, many immigrants in downtown Manhattan are celebrating, too. One hundred of them, representing 31 countries across four continents, graduated as U.S. citizens, joining the ranks of 680,000 others every year in New York and cities around the country.
    Video

    Video Vietnam Sees Strong Economic Growth Despite Incomplete Reforms

    Vietnam has transformed its communist economy to become one of the world's fastest-growing nations. While the reforms are incomplete, multinational corporations see a profitable future in Vietnam and have made major investments -- as VOA's Jim Randle reports.
    Video

    Video Qatar Denies World Cup Corruption

    The head of Qatar’s organizing committee for the 2022 World Cup insists his country's bid to host the soccer tournament was completely clean, despite the corruption scandals that have rocked the sport’s governing body, FIFA. Hassan Al-Thawadi also said new laws would offer protection to migrants working on World Cup construction projects. VOA's Henry Ridgwell reports.
    Video

    Video Infrastructure Funding Puts Cambodia on Front Line of International Politics

    When leaders of the world’s seven most developed economies meet in Japan next week, demands for infrastructure investment world wide will be high on the agenda. Japanese Prime Minister Shinzo Abe’s push for “quality infrastructure investment” throughout Asia has been widely viewed as a counter to the rise of Chinese investment flooding into region.
    Video

    Video Democrats Fear Party Unity a Casualty in Clinton-Sanders Battle

    Democratic presidential front-runner Hillary Clinton claimed a narrow victory in Tuesday's Kentucky primary even as rival Bernie Sanders won in Oregon. Tensions between the two campaigns are rising, prompting fears that the party will have a difficult time unifying to face the presumptive Republican nominee, Donald Trump. VOA national correspondent Jim Malone has more from Washington.
    Video

    Video Portrait of a Transgender Marriage: Husband and Wife Navigate New Roles

    As controversy continues in North Carolina over the use of public bathrooms by transgender individuals, personal struggles with gender identity that were once secret are now coming to light. VOA’s Tina Trinh explored the ramifications for one couple as part of trans.formation, a series of stories on transgender issues.
    Video

    Video Amerikan Hero Flips Stereotype of Middle Eastern Character

    An Iranian American comedian is hoping to connect with American audiences through a film that inverts some of Hollywood's stereotypes about Middle Eastern characters. Sama Dizayee reports.
    Video

    Video Budding Young Inventors Tackle City's Problems with 3-D Printing

    Every city has problems, and local officials and politicians are often frustrated by their inability to solve them. But surprising solutions can come from unexpected places. Students in Baltimore. Maryland, took up the challenge to solve problems they identified in their city, and came up with projects and products to make a difference. VOA's June Soh has more on a digital fabrication competition primarily focused on 3-D design and printing. Carol Pearson narrates.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8971
    JPY
    USD
    110.16
    GBP
    USD
    0.6811
    CAD
    USD
    1.3106
    INR
    USD
    67.378

    Rates may not be current.