Despite all the optimism stemming in the framework agreement that explains a guide for resolving the Iranian nuclear dispute, the market shouldn’t interpret the deal to mean a million barrels of Iranian crude will go back to the market in the near future.
If the agreement is fully implemented, Iran will stay a year away from being able to assemble enough material for a bomb for at least a decade. It will likewise cap the amount of operational centrifuges at about 6,000 devices, among other changes, in return for eventually having all sanctions associated with its nuclear activities suspended.
But a number of key issues need to be resolved before a final agreement is available by the start of July. Included in this are the requirement for exact modifications and timelines necessary to make sure the Arak heavy water reactor and Fordow enrichment site could be limited to use for civilian purposes.