U.S. Crude Remains Below $74 as 60-Day Iran Sanctions Pause Eases Supply Fears
West Texas Intermediate (WTI) currently trades below $74 a barrel and Brent trades around $77 after the Treasury Department earlier waived sanctions on Iranian oil for 60 days, part of an interim ceasefire roadmap brokered in Switzerland over the weekend.
U.S. crude oil stabilized below the $74 price mark on Tuesday, with both major benchmarks on course for their weakest settlements since the opening days of the Iran conflict, following Washington's decision to temporarily lift sanctions on Iranian petroleum exports.
The August WTI contract dropped on Monday and stabilized on Tuesday to below $74 per barrel. International benchmark Brent for September delivery shed 3.2%, sliding to roughly $77 a barrel. Both of them last traded at these levels at the beginning of March.
The selloff earlier was triggered by an announcement from Treasury Secretary Scott Bessent that the United States had greenlit Iranian crude oil sales. The move follows what Bessent described as "productive talks" between Tehran and Washington held in Switzerland over the weekend..
A joint statement issued early Monday by mediators Qatar and Pakistan confirmed that both sides had mapped out "a roadmap towards reaching a final deal within 60 days." The diplomatic breakthrough raises the prospect of additional Iranian barrels reaching a market that had been bracing for critically tight supplies.
Despite the constructive tone of the negotiations, shipping traffic through the Strait of Hormuz remains substantially below levels seen before the war began. The partial reopening of Iranian flows would nevertheless help offset some of the supply deficit that has kept markets on edge for the past few months.
Traders are now watching whether the 60-day window can hold a durable ceasefire and a better resumption of Iranian exports, or whether this deal proves temporary.
Related assets: Crude Oil, Brent Crude