Oil Prices Set To Plunge After Stunning Strait Of Hormuz Breakthrough

The Trump administration temporarily authorized the production, delivery and sale of Iranian oil under a new 60-day license, a move that could help cool energy markets after weeks of turmoil tied to the Strait of Hormuz.

Treasury Secretary Scott Bessent announced the general license Monday as the U.S. and Iran continue negotiations aimed at reaching a final peace deal.

The license eases restrictions on Iranian crude oil, petrochemical products and petroleum products through Aug. 21.

“In line with the ongoing productive talks in Switzerland, Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency (IAEA) inspectors into their country,” Bessent wrote on X.

“As part of the framework, Treasury has issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian oil,” he continued.

The move marks a major development in the Trump administration’s effort to turn military and economic pressure on Tehran into a broader diplomatic deal.

🚨 JUST IN: Oil has PLUNGED below $74 per barrel as President Trump and JD Vance keep scoring diplomatic wins with Iran

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Iran’s commitment to allow free and open transit through the Strait of Hormuz is especially significant because the narrow waterway is one of the world’s most important oil shipping routes.

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Any disruption there can send energy prices soaring, while a breakthrough that keeps ships moving could help push prices lower.

Vice President JD Vance said Monday that one of the goals achieved during high-level talks in Switzerland was the creation of a mechanism to keep the Strait of Hormuz open and prevent disputes in the shipping lane from spiraling into a wider conflict.

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The license does include limits.

People in North Korea, Cuba or the Crimea region of Ukraine are barred from buying Iranian oil or benefiting from its sale under the terms of the authorization.

The temporary waiver comes as Washington and Tehran continue working toward a final agreement after months of conflict, sanctions pressure and fears that fighting could choke off global energy flows.

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For the White House, the message is that Trump is trying to use leverage to keep oil moving, keep Iran under watch and avoid a broader economic shock.

For American drivers, the biggest question is whether the breakthrough at Hormuz will translate into lower prices at the pump.

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