Global oil prices slid after Iran and six world powers announced a historic nuclear deal, which will allow Tehran to increase its oil exports.

Crude prices fell by around 2 percent in Tuesday’s trade as investors reacted to the deal.

With Tehran keen to regain its status as a major global energy power, there are market fears over a glut of new supply.

Iran is estimated to have up to 30 million barrels of crude in storage.

But Mike Ingram, market strategist at BGC Partners, said that it would be a “number of months” until Iranian oil reached global markets as “verification of Iran adhering to the terms of the deal – by the International Atomic Energy Agency, for instance – will take a number of months.”

“I don’t think we’ll see any crude hitting markets until 2016,” Ingram added.