"The deal opens up the possibility of at least 1 million barrels a day of Iranian crude returning to world markets by the fourth quarter of 2014, as result Brent crude prices could fall to $90 a barrel in this time," he said.
However, other analysts pointed out that Sunday's deal, although seen by many as symbolically important, did not translate to any immediate relief for Iran and there's a chance it may not materialize.
(Read more: Iran curtails nuclear capacity expansion: IAEA)
Negotiations have been fiercely opposed by more hawkish lawmakers in Washington, while the continued threat of an Israeli military attack on Iran also poses a risk to the deal. Meanwhile, even if Iranian supply does return to the market, other stubborn supply headwinds in other major global oil exporting countries, including Libya, Nigeria and Iraq, could also restrict global supply levels.
"What we've seen is two bucks and a bit come off, and that's about perceived geopolitical risk, not about an imminent boost to the supply side, which we are not going to see. There has been no easing of sanctions against crude sales by Iran," said Alastair Newton, senior political analyst at Nomura.
Newton said he believed the deal to be an important step in the right direction, but said there was still a long way to go.
"I do think it's an important step and it's not to be underestimated...[but] there is a long way to go...I do think probably we will get a compromise whereby the sanctions package is passed but not implemented for at least another six months," he added.
(Read more: Iran nuclear talks fail: Where next for oil?)
Guy Stear, head of research for Asia at Societe Generale, told CNBC the deal could have an impact on prices in the medium term, but added that Saudi Arabia could act to limit too much downside.
"The reason the market is bullish is because they see this as an option for improvement in the future. Our analysts say it [the deal] could be worth $5 a barrel so it could get the Brent down to $103, but [a move] below there looks quite improbable," said
"The other thing we tend to think about is how will Saudi Arabia react? If Saudi Arabia thinks more Iranian oil is coming to market, and they think prices are going too low, they may remind the market that they can turn off production as and when they want," he added.
—By CNBC's Katie Holliday: Follow her on Twitter @hollidaykatie