Iran and P5+ 1 nations reached the deal that will curb Iran's nuclear programme and end most economic sanctions imposed on country. China, France, Russia, the United Kingdom, and the United States, plus Germany are called P5+1.
Under the deal, Tehran would have the right to challenge the UN request and an arbitration board composed of Iran and the six world powers that negotiated with it would have to decide on the issue.
- India depends on Iran for most of its energy needs, so fall in oil prices will be proved beneficial for oil marketing companies such as HPCL, Indian Oil and BPCL
- Fall in oil prices have some negative impact for upstream (exploration) companies, which weighed on shares in Cairn India and ONGC.
- The Iran nuclear deal likely to be proved neutral for Reliance Industries.
- The deal has come as a key positive development for Aban Offshore which is engaged in oil exploration and production. It gets 35 per cent of its revenues from Iran. Its stock price went up by 16.16 per cent after the deal.
- Iran may award the right to develop its giant Farzad B gas field to Europeans. ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp, had in 2008 discovered the Farzad-B gas field in its Farsi exploration block in the Persian Gulf.
- Cheaper oil unlikely for Indian refiners as Tehran can do business with any country when sanctions are lifted. Indian refiners will also have to settle past dues of $6.5 billion (over Rs 40,000 crore) in hard currency that they have not been able to pay due to the sanctions.
- According to trade ministry officials, the lifting of sanctions in Iran may be proved beneficial for domestic pharmaceutical, IT and commodity companies. These companies will now be able to compete for contracts in Iran.
- According to analysts, India exports basmati rice, soymeal, sugar, barley and meat to Iran. Under sanctions, Iran paid a premium of up to 20 per cent over global prices to buy from India. Food companies such as McLeod Russel (tea) and Kohinoor Foods (rice) that have business in Iran gained.
- Thousands of exporters in India have enjoyed a three-year run because India did not back sanctions against Tehran. India's exports to Iran doubled to $5 billion in 2013-14, helping to halve its bilateral trade deficit. Now, they will face more competition at a time when exports have dropped 20 per cent because of global slowdown in trade, analysts say.
- Indian companies will have to compete for consumer products ranging from clothing to cars, and big-ticket contracts like the Tehran metro with global firms.