Brent crude prices retreated to $77.6 per barrel following the US Treasury Department’s announcement that it will temporarily suspend sanctions on Iran’s oil production, sales, and delivery.
The waiver, which remains in effect until August 21, allows the Islamic Republic to export crude and related products, effectively removing a key supply-side constraint that had been weighing on global markets.
The price drop marks a sharp reversal of previous gains, as traders quickly adjusted to the prospect of increased Iranian supply entering the global market.
The move underscores how sensitive energy markets remain to geopolitical developments, with the removal of sanctions acting as an immediate deflator for risk premiums that had been bid into prices.
This development follows a broader roadmap agreed upon by Iran and the United States to conclude the first round of negotiations.
The suspension is viewed as a tangible step toward de-escalation, providing a window for diplomatic progress while temporarily easing supply concerns.