Oil prices hit the skids on Monday after Iran and six world powers sealed a deal curbing its nuclear program, a fillip for global economic growth that found expression in heartier share prices from Tokyo to Seoul.
The agreement gives Iran some relief from crippling sanctions and is considered a big step toward a more lasting treaty. While Iran will not be allowed to increase its oil sales for six months, any easing of Middle East tensions tends to lead to lower crude prices.
Brent Crude oil shed $2.89 to $108.16 a barrel, its biggest daily drop in a month. U.S. oil lost $1.37 to $93.47 a barrel.
If sustained, the drop would be a net plus for spending power globally given high petrol prices essentially act like a tax on consumers.
Source: Reuters
