Oil prices have fallen following Iran’s nuclear agreement with six world powers to end economic sanctions.

Reuters reported that Brent crude futures dropped $1.15 to $56.70 per barrel, while the US crude fell $1.05 at $51.15 a barrel.

Sanctions imposed against Iran by the US, EU and United Nations will now be lifted under the deal.

The lifting of sanctions could allow the oil rick country to export more oil into the oversupplied market, weighing down the prices.

"Even with a historic deal, oil from Iran will take time to return, and will not be before next year."

Energy Aspects chief oil analyst Amrita Sen told Reuters: "Even with a historic deal, oil from Iran will take time to return, and will not be before next year, most likely the second half of 2016.

"But given how oversupplied the market is with Saudi output at record highs, the mere prospect of new oil will be bearish for sentiment."

A survey of analysts by Reuters has revealed that Iran may double its oil exports to 500,000bpd by the end of the year, which could reach to 750,000bpd by middle of next year.

During sanctions, oil exports from the country averaged 1.4 million barrels a day during 2014, compared with 2.6 million barrels it exported per day by the end of 2011.

In a related development, the International Atomic Energy Agency (IAEA) signed a deal to address past and present outstanding issues regarding Iran’s nuclear programme.