The Iran nuclear deal could lower gas prices

(Image credit: John Moore/Getty Images)

last updated 14 July 2015

After 20 months of negotiations, Iran, the U.S., and five world powers are signing a final nuclear agreement on Tuesday that will roll back Iran's nuclear program in return for lifting economic and other sanctions. The historic deal could change a lot in the Middle East, for both good and less good, but oil markets reacted immediately, dropping more than 2 percent in early trading Tuesday.

"Iran, which holds the world's fourth-largest proved oil reserves, has seen its oil exports nearly halve from peak levels since Western sanctions were imposed," explains The Wall Street Journal. "Ramping up oil exports will likely add to current oversupply in the global market and pressure oil prices further." It's not clear how quickly Iran could ramp up crude production once the sanctions are lifted.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.