Crude oil contracts fell around $5/bbl around midday Tuesday, continuing their recent sharp declines, after the Wall Street Journal reported the U.S. will allow Iran to immediately begin selling oil and fuel under the deal to end the war.
The Journal, citing people familiar with the agreement, said the provision for waivers of sanctions on oil sales takes effect immediately upon signing the agreement this week and also covers necessary services including banking, transportation and insurance needed to facilitate the sale.
At noon ET, more-active August NYMEX West Texas Intermediate crude futures were around $4.25 lower to $75.20/bbl and July WTI was down $4.75 to $76/bbl.
London-based August ICE Brent was lower by $4.20 to $79/bbl and September Brent was off by $3.70 to $78.50/bbl.
Since Wednesday, both oil benchmarks have dropped around $15 on expectations of a lasting U.S. -Iran cease-fire that would restart critical Middle East oil flows through the Strait of Hormuz.
