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Iran has signed a landmark agreement on its nuclear program with six world powers led by the US, limiting Iran's nuclear capabilities for a decade and reducing the number of Iranian centrifuges by two-thirds. The deal also limits uranium research and development to the Natanz facility and bans on enrichment at key facilities. The deal, in return lifts financial and military sanctions.

The landmark deal caps uranium enrichment at 3.67% and limits the stockpile to 300 kg, all for 15 years. Iran will have to ship spent fuel out of the country forever and allow the IAEA inspectors to have certain access in perpetuity. The inspections, besides tracking of uranium mining and monitoring the production and storage of centrifuges, will last for up to 20 years.

The US estimates that these new measures will stop Iran from assembling its first bomb at least for a year from now.

As Iran is likely to pump more crude oil into a market that already has surplus, Indian oil firms are expected to be in good gains.

CRISIL Research director, Rahul Prithiani, said, "Iranian production is expected to increase by close to 0.5 million barrels per day in six months which will result in a crude price impact of close to $3 per barrel. This, in turn, will lead to underrecovery declining by Rs 3,600 crore and upstream company realisations will improve by Rs 1,200 crore. There will be no material impact on oil marketing companies."

This year in January-June, Indian oil imports from Iran reduced 23% as companies curbed inbound shipments. The oil refiners in the country have turned to purchases from other geographies such as Mexico, Iraq and Venezuela. However, the crude prices remained weak due to lower demand.

-Sumana