A nuclear deal framework for Iran was finally announced – marking a breakthrough after a month of talks – with parties aiming for a final agreement by the end of June.

  • RBC’s Head of Commodity Strategy Helima Croft says the framework seems very broad and lacking a lot of specifics and the oil market may be underestimating the remaining challenges.
  • The fact that European and US sanctions will be lifted after a final agreement is not materially different to the statement on sanctions relief contained in the November 2013 Joint Plan of Action. 
  • “We believe the road to a final deal still perilous and the most immediate threat is further Congressional action on Iran in mid-April. This framework may not be enough to keep Congressional critics at bay. The oil market is underestimating the remaining challenges to a final deal. “

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