The United States has suspended sanctions on the production, sale, and transport of Iranian oil for a period of 60 days.
The move, confirmed by the US Treasury Department, marks a significant de-escalation in tensions and is part of an ongoing preliminary agreement with Tehran.
This temporary reprieve allows Iranian crude to re-enter global supply chains, directly addressing the supply fears that had been weighing on energy prices.
Global energy markets reacted swiftly to the news, with Brent crude and WTI futures posting sharp declines as the premium for geopolitical risk evaporated.
The sell-off reflects a rapid repricing of supply constraints, as traders adjust to the prospect of increased Iranian output flowing into the market.
The immediate drop in prices underscores how heavily the market had been pricing in the risk of continued sanctions.