Iran Oil Waiver Hits Brent Hard as Sanctions Reverse

The Trump administration issued a temporary license allowing Iran to sell energy exports through August 21, Treasury Secretary Bessent said Monday, after weekend talks between the U.S. and Iran nearly collapsed. The waiver lets the U.S. import Iranian crude and petrochemical products – something it has not done at any meaningful level since 1979 – and allows Iran to be paid in dollars, a critical source of foreign exchange for the country.

"This waiver doesn't just weaken the pressure campaign, it puts it into reverse," Obsidian Risk Advisors managing principal Brett Erickson told Bloomberg.

Brent crude (CO1:COM) traded at $77 a barrel, while WTI (CL1:COM) was at $73. The waiver effectively removes a supply constraint that had kept a floor under prices. Shipowners, traders, and buyers now face a practical question: can they source, finance, and complete Iranian purchases after years of sanctions-driven avoidance?

Vice President Vance said "great progress" was made in the Switzerland talks, despite Iran's weekend declaration that it had closed the Strait of Hormuz. Vance said Iran agreed to allow International Atomic Energy Agency inspectors back into the country, calling it a "major milestone and the first step in permanently ending a nuclear weapons program in Iran." IAEA director general Rafael Grossi, who is attending the talks, has not commented.

The S&P 500 (SP500) fell 0.3%, the Nasdaq Composite (COMP:IND) lost 1.1%, and the Dow (DJI) gained 0.3%. The 10-year Treasury yield (US10Y) rose 5 basis points to 4.51%; the 2-year (US2Y) added 4 basis points to 4.23%.

Options markets are signaling growing concern about technology stocks, particularly AI-linked names, according to Apollo chief economist Torsten Slok. A key measure of Nasdaq volatility relative to the S&P 500 has climbed to its highest level in years, Slok noted, reflecting a sharp divergence in how investors price risk. Demand for downside protection in the Nasdaq has accelerated, while S&P 500 volatility remains subdued – a pattern that points to a targeted shakeout in high-growth tech rather than a broad selloff.

In deal news, AbbVie (ABBV) agreed to acquire Apogee Therapeutics (APGE) for $135.11 per share, roughly $10.9 billion in equity value. APGE shares rallied 52%. The deal adds zumilokibart, a subcutaneous monoclonal antibody targeting IL-13, to AbbVie's immunology pipeline. Micron Technology (MU) partnered with Anthropic to develop memory and storage for AI workloads, with Micron up 5% in early trading. Meta Platforms (META) took a 20% stake in Indian fintech Cred for $900 million, valuing the platform at $4.5 billion. Cred founder Kunal Shah will head WhatsApp, replacing Will Cathcart, who moves to an AI role at Meta.

Nvidia (NVDA) was in focus as Dell Technologies (DELL) and Super Micro Computer (SMCI) launched servers using Nvidia's Vera Rubin GPUs. Nvidia said the Vera Rubin and Vera CPU lines would reach other server makers and support climate modeling and energy exploration. Coinbase Global (COIN) is now offering traders pre-IPO perpetual futures tied to Anthropic and OpenAI, following a similar SpaceX product Reuters reported earlier this month. The derivatives have no direct link to the underlying shares but are priced against the companies' latest disclosed valuations.

The Iran waiver is the single biggest shift in oil supply policy since the Trump administration tightened sanctions. The question for crude markets is whether the August 21 deadline gives buyers enough time to restart Iranian supply chains, or whether the political risk of a deal collapse keeps most of them on the sidelines.

Vance said Iran's invite to IAEA inspectors was a "major milestone." Grossi has not commented. The Strait of Hormuz remains open, despite Iran's weekend threat. The waiver runs through August 21.