Turkey reaction to deal "very positive"

Turkey's Energy Minister Taner Yıldız welcomed the agreement, saying it was a "very positive development" and "could unlock investment".

"Removal of sanctions on Iran is significant for investments in the country as well as oil prices," Yildiz said.

Noting that Iran has rich oil and natural gas, the energy minister said that supplying these resources to the region and the world would have important consequences for oil prices.

Diplomatic ties between the two countries have been fraught with opposing policies and interests in the Middle East, but maintained by the benefits of maintaining good bilateral relations, analysts say.