Iran is taking its first step in the global market since the nuclear deal was reached, as the country has reported its first shipment of crude oil sent to Europe since sanctions were lifted, ABC News reported. This was Iran's first shipment of crude oil in five years.
Iran has been working to rebuild its oil production industry since the sanctions were lifted in January, according to Bloomberg. The country hopes to increase its output of crude oil by 1 million barrels per day.
Four million barrels of oil will be shipped to Europe. Two million barrels will be transported by France's Total SA company, while the remaining 2 million barrels will be transported by other companies, heading to Spain and Russia.
The lifted sanctions are a good thing for oil business in Iran, even though crude oil prices continue to plummet, The International Business Times reported. However, other sanctions on the country remain in place, including those on human rights and terrorism.
These sanctions do affect the crude oil business, too, as they prohibit dollar-based transactions with companies in Iran. This means that costs will be raised for those looking to buy Iranian oil. There is also a reluctance to buy Iranian oil because of fear in regards to American regulations.
