Government & Regulatory | General News

Trump Withdraws U.S. from Iran Nuclear Deal

Share Print Bookmark    |    Tuesday,May 08,2018

President Donald Trump has announced that the U.S. will be exiting the Iran nuclear deal.

The deal was originally struck in 2015 during Barack Obama's tenure as president - it lifted economic sanctions against Iran in return for the country's agreement to limit its nuclear activities and submit to inspections.

As part of the move, Trump plans to reinstate sanctions on Iran's oil sector - which will result in commodity prices increasing.

WTI Prices

Iran's production saw a sizable increase in the aftermath of the 2015 deal, when sanctions were lifted.

Iran Oil Production

As a result of this latest development, Shale Experts CEO Rons Dixon noted: "We will continue to monitor the frac market, but we are 80% sure this will translate to higher oil prices and as a result an increase in our US horizontal completions for the year.

"Our expectation this year is for a total of 21,130 wells to be frac'd, which will require an additional three to four million horsepower - some of which will be used to replace current capacity."

Want to learn more about our Frac & Completions Database and Reports? Click here

Despite the US's impending withdrawal, Britain, France, Russia, China and Germany remain active participants in the deal with Iran. The European nations attempted to compromise on the deal's terms in an effort to keep the US on board with the agreement, but no such compromise was reached.

In response to the decision, French President Emmanuel Macron commented: "France, Germany and the United Kingdom regret the US decision to get out of the Iranian nuclear deal."