Iran's Stock Market Soars Amid Increasing Hopes for Nuclear Agreement

Tehran's stock market soared by 999 points on Saturday, July 4, coinciding with rising hopes for a nuclear agreement. The stock index started the first working day of Iran at approximately 64,861 points but exceeded 65,860 points by the time of this report (3 PM). According to the official Tehran Stock Exchange website, the stock index increased by 1.54% on Saturday. The sudden surge in the Tehran stock market index comes as negotiations for a comprehensive nuclear agreement between Iran and six world powers were extended for another week, originally scheduled for July 2. Reports from domestic and foreign media indicate progress in the nuclear negotiations among the foreign ministers of Iran and the 5+1 group. Additionally, Yukiya Amano's visit to Tehran on Thursday was viewed positively, and Abbas Araqchi, a member of the Iranian negotiating team, stated on Saturday that "we are ready to cooperate with the agency regarding potential military dimensions and expedite this cooperation to reach a clear conclusion on this matter." Mohammad Javad Zarif, Iran's foreign minister, stated in a message published on YouTube on Friday, July 3, that Iran and the international community have never been this close to a "sustainable agreement" regarding the Islamic Republic's nuclear program. However, he noted that "a definitive solution has not yet been reached." On Saturday's trading, three stocks, including the Islamic Republic of Iran Shipping Lines with a 91-point increase, Bank Mellat with an 80-point increase, and Bandar Abbas Oil Refinery with a 76-point increase, had the most positive impact on the overall stock index. The total value of stock transactions on the first working day of the week exceeded 282 billion and 215 million tomans. The stock index had been declining since the winter of 2014 and fell to around 61,500 points by the end of the current year on March 15. A year prior, the stock index was above 89,000 points, and in February, it was at 65,000 points. The decline in the stock index in February led to protests from shareholders, which escalated into violence. In this context, on Saturday, Shana news agency, affiliated with the Iranian Ministry of Oil, reported an increase in the value of petrochemical and industrial company stocks, stating that "capital market experts believe that in the coming days, as the deadline for announcing the results of the nuclear negotiations approaches, the stock market will experience fluctuations in stock prices in a positive direction, a trend that requires waiting for the contents of the nuclear agreement and the behavior of market stakeholders after the potential lifting of sanctions to ensure its continuity." If a nuclear agreement is reached, Western economic sanctions against Iran will be lifted, paving the way for international companies to return to Iranian markets, reconnecting Iran to the international money transfer system, and more.