On Monday, Iran said it will halt some of its most sensitive nuclear operations in an attempt to recover more than $4 billion in frozen oil revenue. The discontinuation of uranium-enrichment sites led the U.S. and United Nations to lessen the severity of penalties on Iran.
The increased revenue will greatly benefit the struggling Iranian economy, and a larger oil supply from Iran should help drive down the price of oil.
Meanwhile, there's a possibility of reduced tension in Syria if peace talks in Geneva bear fruit. Still, that will be tough as this past week photographs were allegedly obtained showing that the magnitude of violence carried out by the Syrian government on its people was more severe than originally believed.In China, it was reported Monday that gross domestic product growth for 2013 beat estimates, and yet demand for oil rose by only 1.6%, versus a forecast of 3.8%. Growth in the country is hovering dangerously close to the 7% threshold, which would signal a big slowdown in economic output. USO data by YCharts At the time of publication, the author had no position in the index fund mentioned. Follow @macroinsights This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV