Oil Prices Fall Below $80 as U.S. Prepares Iran Sanctions Waivers

Oil prices extended their decline on Tuesday after a Wall Street Journal report indicated the United States will issue sanctions waivers allowing Iran to sell crude immediately after the formal signing of a ceasefire agreement. Brent crude fell 4.99 percent to $79.02 a barrel by mid-afternoon Eastern time, while West Texas Intermediate dropped 5.67 percent to $76.17 a barrel.

Both benchmarks traded below $80 for the first time since March. People familiar with the agreement told the Journal that the waivers will cover oil sales, banking, transportation, and insurance. A U.S. official confirmed to the outlet that initial sanctions relief will begin after the signing, with further relief tied to Iranian compliance on keeping the Strait of Hormuz open.

Traffic data released Tuesday morning recorded only five confirmed crossings through the Strait of Hormuz the previous day, three of which carried petroleum products or steel. HSBC analysts cited by the Journal estimated that traffic will not return to normal levels until late July and will not reach pre-war volumes until September.

The analysts listed remaining hurdles including mine clearance, insurance reinstatement, repositioning of vessels, and restarting idled production and downstream facilities across Gulf producers.

$500 Million Loan for Rare Earth Processing Phoenix

Tailings announced it has received a conditional $500 million loan from the Pentagon to build its Freedom Facility, a midstream plant that will process light and heavy rare earth metals for defense systems, advanced manufacturing, and energy infrastructure.

The company plans to begin operations in 2028 but has not disclosed a location. The Department of Energy awarded Phoenix Tailings an additional $66 million grant earlier this month for rare earth separation technology. The Pentagon loan is part of a broader administration effort that has also provided funding to MP Materials and USA Rare Earth.