US Treasury eases sanctions, issues 60-day license for Iranian oil amid progress in peace talks

The U.S. Treasury Department has eased sanctions on Iran, issuing a temporary 60-day general license that authorizes transactions involving Iranian crude oil, petrochemicals, and petroleum products. This significant policy shift aims to facilitate progress in ongoing peace talks and reduce regional tensions, particularly concerning the critical Strait of Hormuz.

The newly granted license permits all activities related to the extraction, transport, and trade of Iranian-origin petroleum and petrochemicals. Official documentation states that all previously restricted transactions concerning these activities are now authorized until August 21, 2026. This exemption includes essential supporting services such as insurance, maritime transport, and financial processing.

“

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.

U.S. Treasury Secretary Scott Bessent confirmed the decision is linked to advancements in bilateral discussions held in Switzerland. He stated that Iran has committed to ensuring free and open transit through the Strait of Hormuz and will allow International Atomic Energy Agency (IAEA) inspectors access to the country. Bessent noted that the license is part of this framework.

The authorization also covers the importation of Iranian crude and petroleum products into the United States, provided these transactions are necessary to complete sales or deliveries under the new waiver terms. However, the Treasury Department clarified that these exemptions do not apply to dealings with North Korea or Cuba, which remain under strict U.S. sanctions.

“

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