Oil Prices Fall as Iranian Crude Exports Boost Supply
Oil prices declined on Tuesday as data showing rising Iranian crude exports and a temporary US license allowing the production, delivery and sale of Iranian oil supported expectations of increased supply.
Brent crude traded at $76.39 per barrel, down around 1.4% from the previous close of $77.52. US benchmark West Texas Intermediate (WTI) fell 1.5% to $72.76 per barrel, compared with $73.86 in the previous session.
Iran has exported 36 million barrels of crude oil since June 15, following the announcement of a memorandum of understanding with the US, according to ship-tracking platform TankerTrackers.
“There is roughly an equal amount still afloat in Iran,” TankerTrackers posted on X.
On June 14, Iran and the US announced that they had reached a 14-point understanding, mediated by Pakistan, aimed at ending hostilities and resolving disputes through dialogue and negotiations.
The memorandum entered into force on June 18 after being electronically signed by Iranian President Masoud Pezeshkian and US President Donald Trump.
Its provisions include ending hostilities across the region, including in Lebanon, reopening the Strait of Hormuz, and lifting the US naval blockade imposed on Iran.
Talks between the US and Iran continue in an effort to achieve lasting peace in the Middle East.
Meanwhile, the US Treasury Department issued a temporary 60-day general license authorizing the production, delivery and sale of Iranian oil as part of an emerging nuclear framework, Treasury Secretary Scott Bessent announced on Monday.
In a post on X, Bessent said that Iran had committed to ensuring free and open transit through the Strait of Hormuz and agreed to allow inspectors from the International Atomic Energy Agency (IAEA) into the country as part of the ongoing negotiations in Switzerland.
“As part of the framework, Treasury has issued a temporary 60-day general license authorising the production, delivery, and sale of Iranian oil,” he added.
The authorisation, designated General License X and issued by the Office of Foreign Assets Control (OFAC), permits transactions related to the production, sale, delivery and offloading of Iranian-origin crude oil, petroleum products and petrochemicals through Aug. 21, 2026.
The prospect of additional Iranian crude returning to global markets contributed to the drop in prices, strengthening expectations of higher supply while easing concerns over disruptions in the Strait of Hormuz.
On the other hand, limiting further declines, Russia imposed temporary fuel sales restrictions across several regions after recent Ukrainian drone attacks on oil refineries disrupted refining operations and raised concerns over fuel supplies.
Authorities in the Saratov, Omsk and Voronezh regions introduced temporary limits on gasoline and diesel purchases, citing increased demand and the need to prevent speculation in the fuel market.
Similar restrictions were imposed over the past week in Crimea and the Tver region, while Russian oil producer Tatneft also introduced temporary limits at its filling stations nationwide.
The measures follow a series of Ukrainian drone strikes on Russian energy infrastructure. Earlier this month, Ukraine’s General Staff claimed its forces had struck 16 major Russian oil refineries and fuel terminals, taking more than 30% of the country’s refining capacity offline. Iran Plans to Restore 3mbpd Oil Production in 60 Days
