Oil prices drop after Tehran says it secured sanctions relief, easing fears of a supply crunch.
Brent crude slid on Monday after the U.S. and Iran wrapped up high-level talks in Switzerland, with Tehran claiming it had won waivers for oil and petrochemical exports. The news calmed market nerves over a potential supply shortage.
Key Details
Brent fell $1.19, or 1.48%, to $79.38 a barrel by 0416 GMT, reversing an earlier spike to $82.30 triggered by threats from President Trump to resume strikes on Iran and Tehran’s move to shut the Strait of Hormuz again.
U.S. WTI crude held steady, up 13 cents at $76.73 a barrel ahead of contract expiry, while the more active August contract slipped 21 cents to $75.64.
Iranian Foreign Minister Abbas Araqchi said Iran secured export waivers, access to frozen assets, and a reconstruction plan. Analysts estimate this could bring roughly 1.5 million barrels per day of Iranian crude back to global markets.
Market Reaction
Oil had already dropped more than 8% last week on hopes of a deal. Iraq, the UAE, and Kuwait have ramped up supply offers, and Iraq plans to boost output to between 4.2 and 4.3 million barrels per day.
Why It Matters
For traders, this is about supply easing into a market where demand growth is already soft. More Iranian barrels mean more downward pressure on prices, but the ceasefire underpinning all of this remains fragile.
What to Watch Next
Ship traffic through Hormuz, the durability of the 60-day ceasefire, and whether Washington formalizes any sanctions relief will all move prices fast in either direction.
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Source: Reuters
Time: 9:45 AM EEST
