Sensex rises 388 points as oil prices fall after Iran deal

The BSE Sensex had lost nearly 674 points in the previous three sessions. Photo: Hemant Mishra/Mint

New Delhi/Mumbai: The historic deal to curb Iran’s nuclear programme prompted a fall in oil prices and buoyed global stock markets, including India’s, on Monday as investors factored in the boost the easing of tensions in West Asia could provide to global economic growth.

The deal will also make it easier for India to do business with Iran, India’s second largest source of oil imports before supplies steadily declined in the wake of global economic sanctions against the West Asian nation for its suspected nuclear weapons programme.

Since February, the sanctions have prevented Iran from repatriating cash earned from the oil it has been able to export, crippling the economy by choking off its biggest revenue stream.

The easing of a ban on European insurance for shipments of Iranian oil may lift Iran’s crude exports to big oil buyers in Asia, including India and China.

Oil buyers in Asia, Turkey and South Africa have reduced imports of Iranian oil to avoid the threat of US sanctions, but also have had imports curtailed by the ban on UK-dominated providers of shipping insurance
RAHUL KUMAR
1ST YEAR PGDM