Iran and world powers reach agreement on nuclear programme

Iran and the six world powers with whom it was negotiating have reached an agreement on the country’s nuclear programme, according to diplomats.

The Islamic Republic will obtain sanctions relief in exchange for curbs on its nuclear activities, Reuters reported citing an Iranian diplomat and another official from the country.

"All the hard work has paid off and we sealed a deal. God bless our people," the diplomat told Reuters on condition of anonymity.

Read more: Iran nuclear talks to resume

Iranian Foreign minister Mohammad Javad Zarif, and European Union (EU) Foreign Policy Chief Federica Mogherini will read a joint statement in a few hours announcing a deal between Iran and six major powers, news agency ISNA reported earlier on Tuesday.

"In a few hours Zarif and Mogherini will read a joint statement at the UN offices in Vienna, in the presence of foreign ministers of six powers," ISNA reported.

Foreign ministers from UK, US, France, Germany, Russia and China met on Monday night in order to complete the agreement, which has been under negotiation for more than 20 months.

Some sticking points of the negotiations have been Iran's request for an immediate lift, once the deal is struck, of its arms embargo by the UN Security Council, as well as the ban on its ballistic missile programme.

As of 0801 BST front month Brent crude futures contract was 2.1% lower. The announcement had been preceded by sharp falls in the price of oil.

Estimates point to approximately 40m barrels of Iranian oil in offshore storage which is ready to hit the markets and add to the existing supply glut.

Market analysts stressed, before the deal was announced, that the near completion of a nuclear accord with Iran was sending oil prices lower.

London Capital Group's Jonathan Sudaria commented that oil prices had fallen overnight "as the market awaited a nuclear deal between Iran and six other global powers that could provide a steady increase in oil exports."

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