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Oil prices tumbled on Monday following solid talks in Switzerland between the United States and Iran, and after U.S. Treasury Secretary Scott Bessent announced the temporary issuance of a license allowing Iran to sell crude and petrochemical products.
According to a report from NBC, oil prices fell to approximately $74 per barrel on Monday, marking the lowest price since March – the early days of the conflict with Iran.
As reported by RSBN, Iran agreed to allow nuclear inspectors back into their country this week and also committed to keeping the Strait of Hormuz open and flowing, according to Bessent.
Bessent cited the “productive talks in Switzerland” as a catalyst for the decision to issue the temporary license, which will allow Iran to move oil to just about anyone, including the United States. The license expires on August 21, 2026.
According to Patrick De Haan, the head of petroleum analysis at GasBuddy, gas prices have dropped just over 14 cents over the past week, landing at an average national price of $3.85 per gallon.
“Average gasoline prices declined in nearly every state over the last week, while all 50 states saw average diesel prices move lower,” he said in a statement on social media.
De Haan continued, “However, the outlook is far from settled. New uncertainty has emerged after Iran suggested the Strait of Hormuz was closed, along with fresh warnings that the U.S. could again strike Iran, developments that could push oil prices higher in the days ahead.”
However, if the progress in peace talks between the U.S. and Iran holds, market optimism could be on the rebound, especially in the wake of Monday’s 60-day license on Iranian crude sales. It’s too soon to say, but the lower oil prices were likely welcome news to many Americans, especially as the Strategic Petroleum Reserve (SPR) continues to be relied on heavily to offset the effects of the energy crisis sparked by the war.
According to the BOE Report, citing data from the Department of Energy, the SPR fell to 331.2 million barrels in the last week, marking the lowest level for the reserve since 1983.