Iran wants to fill Russia's market share for oil in Europe if there is a nuclear deal.
Iran's plan comes amidst stiff competition with its ally Russia in the international oil markets as both countries are slashing prices to sell to non-sanctioning buyers such as China and India.
Iran's state oil producer would look for customers in countries such as Greece, Italy, Spain, and Turkey if economic sanctions were to be lifted, according to a report.
After Donald Trump withdrew from the nuclear deal in May of last year, there was hope that it could be revived. Three years had passed since Iran reached a historic deal with six world powers to limit its nuclear program in exchange for sanctions relief.
In the years that followed when there wasn't a supply crunch, Iran's missing barrels didn't have much of an effect on global prices. The European Union will be banning Russian oil by the end of the year.
As Tehran re-enters talks surrounding the nuclear deal, trade participants are expecting much needed Iranian supply to make up for some Russian crude that has been taken out of the market due to sanctions or boycotts.
Henry Rome, deputy director of research and Iran analyst at the Eurasia Group, told the GZERO media platform that a deal would cause Iranian crude to return to the market. US crude oil futures have fallen from a 13-year high this year.
Iran's oil production capacity is expected to increase to 4 million barrels a day by the end of the Iranian year in March, according to the country's CEO.
A stalemate between the US and Iran is beneficial to both of them, according to analysts from Goldman. Tehran and Moscow's close relationship makes it unlikely that they will agree.
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