US Authorizes Iranian Oil Sales Amid Talks on Final Peace Deal

The United States has authorized Iranian oil sales, a significant step in easing decades-old sanctions as part of ongoing negotiations toward a potential peace deal. The Treasury Department announced a general license permitting the sale of crude oil and petrochemical products of Iranian origin through August 21.

This authorization is linked to Iran's commitments to ensure free and open transit through the Strait of Hormuz and to allow International Atomic Energy Agency (IAEA) inspectors access to its nuclear facilities. Treasury Secretary Scott Bessent stated on X that Iran's commitments are part of a framework for this temporary license.

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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.

A memorandum of understanding signed last week between Washington and Tehran includes the US agreement to issue waivers for Iranian oil exports and associated services, including banking and insurance. This development follows "encouraging progress" reported by mediators in the first round of talks aimed at a final peace agreement. The negotiations also seek to extend a fragile ceasefire for at least another 60 days.

Historically, the US has not significantly imported Iranian oil since imposing sanctions after the 1979 revolution. Independent Chinese refiners have been major buyers of sanctioned Iranian oil, attracted by deep discounts. Other significant buyers before 2018 included India, South Korea, Japan, Italy, Greece, Taiwan, and Türkiye.

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