25 November 2013 05:22 [Source: ICIS news]
SINGAPORE (ICIS)--Iran has agreed to curb its nuclear activities in exchange for relief from international sanctions valued at $7bn, in a milestone agreement with world powers in Geneva over the weekend, according to media reports.
Concerns that the Middle Eastern country has been developing a nuclear weapon prompted the imposition of the sanctions.
The historic deal will be in effect for six months, according to media reports.
Iran has agreed to halt enrichment of uranium beyond 5% and provide better access to United Nations (UN) inspectors on its nuclear programme.
The country has been enriching uranium to medium-grade purity (20%) – which is deemed easy to enrich further to weapons-grade level.
The deal was struck months after Iran elected Hassan Rohani, the country’s former top nuclear negotiator – as its president.
At the Gulf Petrochemicals and Chemicals Association (GPCA) forum on 19-21 November in Dubai, Middle Eastern petrochemical players had indicated some optimism that the international sanctions on Iran will eventually be lifted.
Lifting the sanctions on Iran would free up more petrochemical supply and could hold sway on the price direction of global commodities, according to industry players.
Iranian producers have been selling their petrochemical output at below market prices, according to a Dubai-based industry source, but added that the situation could change once the sanctions are lifted.
Petrochemical makers in the country may decide to hike offers to improve their margins, the industry source said.
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