Crude oil prices fell sharply on Monday after the United States announced a temporary lifting of sanctions on Iran to permit oil exports.
The US Treasury Department issued a temporary general license allowing the production, export, and sale of Iranian petroleum, a move that immediately triggered a sell-off in global energy markets.
The decision marks a significant shift in the supply outlook, removing a key constraint on global crude availability and pressuring benchmark prices.
Brent crude and WTI futures retreated in the session as traders digested the prospect of increased Iranian supply returning to the market.
The repricing reflects the market's sensitivity to geopolitical supply risks; with the immediate threat of disruption eased by the waiver, the risk premium embedded in energy prices has evaporated.
Energy equities also faced downward pressure as the supply overhang concerns returned.