A proposal to revive the Iran nuclear agreement is imminent. The agreement, also known as the Joint Comprehensive Plan of Action (JCPOA), is an accord between Iran and several world powers reached in July 2015. Under its terms, Iran agreed to nuclear restrictions and the implementation to allow monitoring and verification of its nuclear facilities in exchange for sanctions relief. The objective of the deal was to contain Iran\u2019s nuclear program and prevent a nuclear weapons crisis in the Middle East for the US along with the other P5+1 countries including the UK, France, China, Germany and Russia.<\/p>\n\n\n\n
For Iran, the lifting of sanctions specifically on oil exports would uplift its economy. While the agreement got off to a smooth start, the deal has been near collapse since former US President Trump withdrew the United States from the agreement in 2018. In response, Iran began exceeding limits on uranium. Today, the revival of the JCPOA is in the works. The proposal stipulates that once the agreement is signed, sanctions on 17 Iranian banks and 150 economic institutions will be lifted.<\/p>\n\n\n\n
Iran, in turn, will immediately have to reverse the steps it took to advance its nuclear technology, with the country\u2019s stockpile of enriched uranium already at 60%. The new deal is expected to be carried out in four phases over two 60-day periods. Within 120 days of signing the agreement, Iran will be permitted to export 50 million barrels of oil per day.<\/p>\n\n\n\n
Our View:<\/strong> Should the deal push through, crude oil supply will rise and oil prices should drop further. If a deal is reached to restore the 2015 nuclear accord, oil exports from Iran should improve global supply. The return of Iranian crude oil could should augment supply once EU sanctions on Russian crude oil come into effect by December 5. Note that EU countries are still importing 1.2 million barrels of Russian crude oil a day.<\/p>\n\n\n\n This should drive oil prices down. Lower oil prices should directly benefit the automobile industry. In addition, consumer staples and consumers discretionary businesses should also benefit. Consumer discretionary businesses (retail and restaurants) are affected indirectly from lower oil prices as consumers look for other ways to spend the money that they save on fuel. Consumer staples should also benefit as there\u2019s more room to spend on other necessities.<\/p>\n","protected":false},"excerpt":{"rendered":" Here’s a commentary on an important issue or event affecting the stock market <\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-316730","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=316730"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316730\/revisions"}],"predecessor-version":[{"id":320490,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316730\/revisions\/320490"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=316730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=316730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=316730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}