The United States has partially lifted sanctions on Iranian oil exports, granting a 60-day waiver that allows for the production, delivery, and sale of Iranian crude to the U.S. This move comes after mediators and U.S. Vice President JD Vance reported encouraging progress in peace talks between Washington and Tehran held in Switzerland. The easing of sanctions is a direct result of a memorandum of understanding (MoU) signed between the two nations on June 17, marking the first time in 35 years that Iranian crude can enter the U.S. market.
Following this announcement, global oil prices experienced a notable decline. International benchmark Brent crude fell more than 3% to $78.68 as of 7:06 a.m. EDT, and later dropped further to $77.7 per barrel, a more than 3.5% decrease. US West Texas Intermediate (WTI) crude also saw a decline, hovering near $77 a barrel. This drop reflects market expectations that additional Iranian oil supplies will soon enter the global market, potentially alleviating the impact of recent global oil disruptions and easing supply concerns that had pushed prices from $70 before the conflict to nearly $115 last month.
US Treasury Secretary Scott Bessent confirmed the waiver, noting that Iran has committed to ensuring free and open transit through the Strait of Hormuz and allowing International Atomic Energy Agency (IAEA) inspectors back into the country. These commitments are part of the broader framework aimed at establishing a full peace deal within 60 days. The Strait of Hormuz, a critical chokepoint for roughly a fifth of global oil and LNG shipments, had experienced closures and disruptions, contributing to prior price hikes. The agreement also includes a framework to end fighting in Lebanon and address Iran's nuclear program.
