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Iran deal heralds return to cheap-oil era?

(Dawn) Post Iran nuclear deal, the fear premium is dwindling. Markets are softening. Yet, issues continue to confound. Would the event unleash a flood of oil into the markets? How would other members of the Organisation of the Petroleum Exporting Countries (Opec) react to the emerging threat?

The deal to lift sanctions against Iran could trigger a slide in prices and a major shake-up of the energy landscape, Ambrose Evans-Pritchard wrote. The accord should unlock 800,000 barrels per day (bpd) of global supply by next year in a market of 89 million, rising over time as the Iran’s oil industry comes back to life.

Anticipating a final deal, Tehran is already in touch with western oil majors. Oil minister Bijan Namdar Zanganeh had initial meetings with European companies and “indirectly” with US firms, inviting them back to Iran.