Brent crude prices fell by more than two per cent today following a key deal between world powers and Iran on its controversial nuclear programme.

Brent North Sea crude, the European benchmark, for January delivery fell $2.48 or 2.23 per cent, in early Asian trade to $108.57, while New York’s main contract, West Texas Intermediate (WTI) crude for January, was down 84 cents, or about one per cent, at $94 in mid-morning trade.

“Brent had rallied last week in response to market talk that the negotiations weren’t going so well, and what we see right now is a downward correction of prices after the deal,” Victor Shum, managing director at IHS Purvin and Gertz in Singapore, said.

“The impact of the deal on global oil supply will however be limited since much of the sanctions continue to remain in place.”

Iran had yesterday agreed to curb its nuclear programme for the next six months in exchange for limited sanctions relief, in a preliminary accord with world powers meant to lay the foundations for a comprehensive agreement later this year.

The deal was reached in marathon talks in Geneva that ended on Sunday after protracted negotiations between Iran and the so-called P5+1 nations comprising the United States, China, France, Britain, Russia and Germany.