US authorizes Iranian oil sales amid talks on final peace deal

The United States Treasury Department has authorized the production, delivery, and sale of Iranian oil, a significant step taken under a recent agreement between Washington and Tehran. This authorization is part of ongoing talks aimed at reaching a final peace deal between the two nations.

A general license, effective immediately and valid through August 21, permits the production, delivery, and sale of crude oil, petrochemicals, and petroleum products originating from Iran. This move was announced by Treasury Secretary Scott Bessent via X/Twitter, who stated it aligns with "productive talks in Switzerland." As part of the understanding, Iran has committed to ensuring free and open transit in the Strait of Hormuz and allowing International Atomic Energy Agency (IAEA) inspectors access to its facilities.

The memorandum of understanding signed last week between the US and Iran includes the US issuing waivers for the export of Iranian crude oil, petroleum products, and derivatives. These waivers also cover associated services, such as banking transactions, insurance, and transportation. The authorized transactions specifically include the importation of Iranian-origin crude oil, petrochemicals, and petroleum products into the United States, provided it is necessary to complete a sale or delivery.

However, the license explicitly does not authorize any transactions involving North Korea or Cuba, countries that are subject to heavy US sanctions. The authorization comes as diplomatic efforts between the US and Iran continue, with the temporary nature of the license suggesting a potential for further developments based on the outcome of the peace talks.

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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. As part of the framework, Treasury has issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian oil.