The United States has authorized a temporary suspension of sanctions on Iran’s crude oil production and exports, permitting the Islamic Republic to sell and ship petroleum products through August 21.
The US Treasury Department issued a general license that effectively lifts the ban on transactions related to Iranian oil, a move that immediately triggered a sharp sell-off in global energy markets.
Brent crude prices fell sharply in the session as traders repriced the supply outlook.
The waiver removes the immediate threat of Iranian barrels being cut off from the market, injecting fresh supply expectations into an already tight global balance.
Energy equities also faced selling pressure as the geopolitical risk premium that had supported valuations evaporated.
The authorization, announced by Treasury Secretary Scott Bessent, covers the extraction, sale, and transportation of Iranian crude and petrochemicals.