WASHINGTON, D.C: The United States has quickly licensed the sale of Iranian oil and petroleum merchandise, easing decades-old sanctions as Washington seeks a ultimate peace settlement with Tehran.
The Treasury Department introduced the 60-day normal license on June 22. It permits the manufacturing, supply, and sale of Iranian crude oil, petrochemicals, and petroleum merchandise by way of August 21.
The transfer follows an interim memorandum of understanding signed by the United States and Iran final week. Under the framework, Washington agreed to difficulty waivers masking Iranian crude exports and associated companies, together with banking transactions, insurance coverage, and transportation.
The license additionally permits the import of Iranian oil into the United States when vital to finish a sale, supply, or offloading. The U.S. has not meaningfully imported Iranian oil since imposing measures after Iran’s 1979 revolution.
“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,” Treasury Secretary Scott 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.”
Payments to Iran could also be made in U.S. dollar-denominated funds beneath the license. Cuba, North Korea, and Crimea are excluded from the authorization.
Washington first imposed sanctions on Iran in 1979 after revolutionary college students seized the U.S. embassy in Tehran and held American diplomats hostage. Further sanctions have been imposed over Iran’s nuclear program and its help for teams the United States considers terrorist organizations.
Independent Chinese refiners have been the primary consumers of sanctioned Iranian oil lately, benefiting from steep reductions as different consumers averted the crude. Before U.S. sanctions have been reimposed in 2018, India, South Korea, Japan, Italy, Greece, Taiwan, and Turkey have been additionally main consumers.
The announcement got here as mediators mentioned Washington and Tehran made “encouraging progress” through the first spherical of talks aimed toward reaching a ultimate peace deal.
The talks started beneath the phrases of final week’s memorandum, which prolonged a fragile ceasefire from April for not less than one other 60 days.
Oil costs had surged after Tehran started blockading the Strait of Hormuz, prompting a U.S. blockade of Iranian ports. Prices fell to their lowest ranges since earlier than the battle started on February 28 after the interim settlement was reached.