- US authorized limited Iranian oil sales, easing sanctions.
- Licence allows crude, petroleum products until August 21.
The United States on Monday authorised limited Iranian oil sales, marking a significant easing of long-standing sanctions as Washington seeks to advance negotiations with Tehran towards a comprehensive peace agreement.
The US Treasury Department issued a general licence permitting the production, delivery and sale of Iranian crude oil, as well as petrochemical and petroleum products, until August 21. The licence also allows Iranian oil to enter the United States when necessary to facilitate its sale, delivery or offloading.
Treasury Secretary Scott Bessent said the move was linked to progress in ongoing negotiations in Switzerland. According to Bessent, Iran has committed to ensuring free and open transit through the Strait of Hormuz and to allowing inspectors from the International Atomic Energy Agency (IAEA) access to the country.
Temporary 60-Day License Established
The temporary 60-day licence forms part of a broader framework established under a memorandum of understanding signed between Washington and Tehran last week. Under the arrangement, the United States agreed to grant waivers for the export of Iranian crude oil, petroleum products and related services, including banking, insurance and transportation.
The licence also permits payments to Iran in US dollar-denominated funds. However, entities linked to Cuba, North Korea and Crimea remain excluded from the authorisation.
The move represents a notable shift in US policy towards Iran. Washington first imposed sanctions on Tehran following the 1979 hostage crisis and later expanded restrictions over concerns regarding Iran’s nuclear programme and its support for groups designated by the US as terrorist organisations.
Before the reimposition of sanctions in 2018, countries such as India, Japan, South Korea, Turkey, Italy, Greece and Taiwan were among the major importers of Iranian crude. In recent years, independent Chinese refiners have remained the primary buyers of Iranian oil, benefiting from discounted prices.
The announcement came as mediators reported “encouraging progress” during the first round of US-Iran talks aimed at securing a permanent peace agreement. The negotiations are taking place under the terms of last week’s memorandum, which extended a fragile ceasefire for at least 60 days.
Dollar Climbed As US-Iran Talks Laid ‘Good Foundation’
Global oil markets have closely monitored developments. Oil prices surged earlier when Iran moved to restrict traffic through the Strait of Hormuz, prompting a US response targeting Iranian ports. Following the interim agreement, however, prices retreated to their lowest levels since before the conflict began in late February.
The dollar climbed on Monday as the first round of US-Iran talks buoyed optimism for a peace deal. US Vice President JD Vance said talks with Iranian officials in Switzerland had laid a “good foundation” for a final peace deal, despite tensions over the Strait of Hormuz and Lebanon.
U.S. crude fell 2.61% to $74.60 a barrel and Brent fell to $77.98 per barrel, down 3.21% on the day.
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