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Oil prices rebound after dive over Iran deal

Oil prices rebound after dive over Iran deal
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Global oil prices rose on Tuesday after taking a tumble earlier in the day’s trading session when a historic Iran nuclear deal was announced.

The agreement, signed by Iran and six world powers, will allow Tehran to increase its oil exports after years of crippling sanctions.

Crude prices fell by around 2 percent as investors reacted to the deal before rebounding later in the session.

“Verification of Iran adhering to the terms of the deal – by the International Atomic (Energy) Agency, for instance – will take a number of months,” said Mike Ingram, market strategist at BGC Partners.

“I don’t think we’ll see any (Iranian) crude hitting markets until 2016,” Ingram added.

Iran, which is keen to re-establish itself as a major global energy supplier, is estimated to have up to 30 million barrels of crude in storage.