Immediately after the revolution in Iran in 1979 the USA placed sanctions on the country and expanded them in 1995. Iran in contemporary times has pursued a nuclear system and in 2006 the UN security council placed additional sanctions targeting oil and gas immediately after they refused to suspend their uranium enrichment system. On January 23 2012 the UN security council banned imports of Iranian crude oil and petroleum products.

Iran has been in talks to possess their sanctions lifted and on 2nd April 2015 representatives from China, France, Russia, UK, USA plus the EU met in Lausanne Switzerland exactly where they reached a provisional agreement framework that when finalised would lift most of the sanctions in exchange for limits on Iran's nuclear system.

Lifting Iranian sanctions will have a considerable impact around the globe oil market. Iran's oil reserves will be the fourth biggest on the planet and they have a production capacity of about 4 million barrels every day, generating them the second largest producer in OPEC. Iran's oil reserves account for roughly 10% on the world's total verified petroleum reserves, in the price with the 2006 production the reserves in Iran could final 98 years. Probably Iran will add about 1 million barrels of oil a day towards the marketplace and according to the world bank this can result in the lowering with the crude oil value by $10 per barrel next year.

In line with Information from OPEC, in the start off of 2013 the biggest oil deposits are in Venezuela becoming 20% of international oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics of your reserves it can be not often possible to bring this oil for the surface given the limitation on extraction technologies as well as the cost to extract.

As China's enhanced demand for natural gas as an alternative to fossil fuel additional reduces overall demand for oil, the boost in supply from Iran and the continuation Saudi Arabia putting extra oil onto the industry should see the price tag drop over the subsequent 12 months and some analysts are predicting prices will fall into the $30's.

As the cost of oil fluctuates it is vital to determine which currencies correlate closely with commodities. The Australian Dollar, Canadian and New Zealand Dollar would be the major three currencies who correlate most tightly with commodities the Swiss franc and also the Japanese Yen to a lesser extent, but still correlate somewhat with commodities.

When trading currency markets preserve an eye on the oil cost and an eye on the markets for signals of price tag change to watch how quickly it adjustments, hold an eye around the lag.

Be conscious, commodity costs can drive currency prices.