Why oil traders are so focused on the Iranian presidential elections

19.05.2017 / 09:22

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The presidential elections in Iran are being closely watched by traders due to the consequences at play for the country's nuclear deal and oil supply.

Since the signing of the nuclear deal in 2015 in which Iran agreed to rein in elements of its nuclear program in exchange for partial sanctions relief from the U.S. and the European Union (EU), Iran has been able to more than double its supply of oil to the market.

Such exports could be at risk, should the nuclear agreement be weakened or abandoned under the next president.

Should the victorious candidate decide to prioritize issues which provoke its agreement partners or declare that the economic benefits of the JCPOA (Joint Comprehensive Plan of Action) do not merit its continuation in the current format, there is a heightened risk that President Donald Trump will retreat from his side of the deal.

Source: Bloomberg Pro Terminal

Jr Trader Ivan Ivanov

Varchev Traders

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Why oil traders are so focused on the Iranian presidential elections

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