The United States has suspended sanctions on the production, sale, and transport of Iranian oil for a 60-day period.
The move, confirmed by the US Treasury Department, is designed to create a stable environment for ongoing diplomatic negotiations.
The waiver effectively removes legal barriers for international buyers and shippers dealing with Iranian crude during this window.
Brent crude futures fell sharply in response to the announcement, as traders priced in the potential return of significant supply to global markets.
The repricing reflects a rapid shift in risk sentiment, with the premium associated with geopolitical supply disruption evaporating.
Energy sector equities also softened, reflecting the expectation of increased competition and lower forward prices.