A 60-day US sanctions waiver for Iranian oil exports triggers sharp price declines amid rising Strait of Hormuz flows.
Oil prices dropped sharply after the US granted a 60-day waiver permitting Iranian oil exports, adding to supply pressures. ICE Brent crude settled 3.3% lower on the news, reflecting concerns over increased flows through the Strait of Hormuz.
Analysts note uncertainty over how quickly Persian Gulf production and transit can normalize, with expectations ranging from weeks to months. The fragile US-Iran ceasefire dynamics further contribute to volatility, keeping upside risks for oil markets.
The waiver’s immediate impact underscores market sensitivity to geopolitical developments, particularly those affecting key transit routes and supply stability.