The United States has lifted sanctions on Iranian oil, a move that immediately triggered a sharp sell-off in global energy markets.
The US Treasury Department issued a temporary general license permitting the production, delivery, and sale of Iranian crude oil, petrochemicals, and petroleum products.
The authorization is set to run through August, providing a clear window for Iranian exports to re-enter the global market.
Brent crude prices fell sharply in response to the news, as traders priced in the imminent return of significant supply.
The removal of sanctions eliminates a major bottleneck in global oil trade, effectively increasing available barrels and easing the supply tightness that had supported higher prices.
WTI crude also declined, tracking the broader energy complex lower as the market digested the implications of the policy shift.