Brent crude fell to around $77.80 a barrel on Monday as the United States officially suspended sanctions on Iranian oil exports through August 21.
The move formalizes a temporary general license issued by the US Treasury Department, permitting the production, delivery, and sale of Iranian crude oil, petrochemicals, and petroleum products.
The authorization effectively removes the regulatory barriers that had previously restricted Iranian hydrocarbons from reaching global markets.
The repricing reflects a rapid shift in supply expectations.
With the threat of immediate sanction enforcement lifted, traders are adjusting positions to account for the potential return of Iranian barrels to the global supply chain.
The drop in Brent underscores how sensitive energy markets remain to geopolitical policy shifts, particularly those involving major producers like Iran.