* Brent crude sinks over $2 a barrel on groundbreaking Iran deal
* Iran deal seen positive for risk appetite, global growth
* Yen remains under pressure, euro makes four-year highs
Oil prices fell sharply on Monday after Iran and six world powers sealed a deal curbing its nuclear programme, a fillip for global economic growth and risk appetites that should benefit share markets.
The agreement, reached late Sunday, gives Iran some relief from crippling sanctions. While it 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 $2.29 to $108.69 a barrel, its biggest daily drop in a month. U.S. oil dived $1.09 to $93.75 a barrel.
Iran Nuclear Deal Done (-20% Uranium Production For $6-7bn Lifted Sanctions)
UPDATE: Details of the deal are emerging including $4.2bn in FX
Despite earlier denials from Iran's Deputy FinMin, EU, Iran, and US officials have confirmed:
- *IRAN NUCLEAR ACCORD WITH WORLD POWERS ENDS 10-YEAR DEADLOCK
- *IRAN WILL HALT 20% ENRICHMENT FOR 6 MONTHS, FARS REPORTS
- *IRAN AGREEMENT DOESN'T FORMALLY RECOGNIZE RIGHT TO ENRICH
- *IRAN AGREEMENT WILL STILL ALLOW IRAN TO ENRICH URANIUM
- *IRAN INTERIM AGREEMENT FREEZES ADDITIONAL SANCTIONS
- *IRAN DEAL LIFTS TRANSPORT AND INSURANCE SANCTIONS ON OIL
(With this Deal, Brent crude oil may touch $100 a barrel, U.S. crude oil $86 a barrel.)
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