Singapore has scrapped its prohibition on transactions with Iran, the latest outcome of the entry into force of Tehran�s nuclear agreement with world powers earlier this month.

The Monetary Authority of Singapore said the decision to lift the ban on business with Iran took effect on January 28.

The ban was slapped on Iran in June 2012 after the Western governments toughened sanctions against the Islamic Republic over its nuclear program.

�The prohibition had applied to all financial institutions and individuals, as defined in section 27A(6) read with section 27A(7) of the MAS Act, from doing business with the Iranian government, its central bank, any financial institutions in Iran and a branch or subsidiary,� Platts weekly said.

The ban had stopped financial institutions in Singapore from �directly or indirectly entering into, continue to participate in, arrange or facilitate the entering into or continued participation in, or any transaction or business relationships� with Iran.

On January 16, Iran�s landmark nuclear deal with six world powers, reached last July, went into effect, leading to the lifting of US, UN and European sanctions on the country.

Before Singapore imposed sanctions on Iran, it imported 362,448 million tons (mt) of fuel oil from Iran in the week leading to February 9, 2011.

Between July 2006 and May 2012, Singapore imported 1.8 million mt of Iranian condensates. Moreover, took delivery of 944,000 mt of Iranian crude oil between August 2006 and April 2012.

Iran is expected to add 500,000 b/d to its oil exports after the sanctions are lifted. It will continue to raise exports to 1 mb/d six months after.

Iran exported 2.3 mb/d-2.5 mb/d of oil before US and European sanctions targeting its energy sector cut the sales by half in 2012. Saudi Arabia, Russia and Iraq ramped up production to replace the Iranian oil.

Iranian officials have urged OPEC members to make room for Iranian oil when the country returns to the pre-sanction export levels.

By Press TV