Oil Falls After US Temporarily Allows Some Iranian Crude Sales; WTI Drops 3%

Oil prices fell after the US temporarily allowed the production and sale of Iranian crude.

Crypto news outlet BlockBeats reported on June 22 that US Treasury Secretary Scott Bessent said the Treasury Department had issued a 60-day temporary general license based on ongoing US-Iran talks in Switzerland.

The license temporarily permits the production, delivery and sale of Iranian crude.

Bessent said the US, under President Donald Trump and Vice President JD Vance, is continuing efforts to build a safer and more prosperous world. He added that Iran had agreed to guarantee free and open passage through the Strait of Hormuz and allow inspectors from the International Atomic Energy Agency to enter the country.

The measure is part of a framework agreement between the US and Iran. It does not fully lift sanctions on Iranian oil, but temporarily allows certain transactions for 60 days.

Oil prices declined. WTI crude traded down 3.00% at $74.93 a barrel during the session. Brent crude also fell 2.75%, dropping below $78 a barrel.

Markets are pricing in the possible return of Iranian crude supply and expectations for normalized transit through the Strait of Hormuz, easing concerns over supply disruptions.