WASHINGTON — The United States has issued a temporary 60-day license authorizing the production, delivery and sale of Iranian oil on global markets, easing key sanctions as Washington and Tehran continue negotiations aimed at reaching a broader peace agreement, U.S. officials said on Monday.
The U.S. Treasury Department announced the general license, which permits transactions involving Iranian crude oil, petroleum products and petrochemicals through Aug. 21. The measure fulfills a commitment made under a memorandum of understanding reached by the two countries last week following talks in Switzerland, according to Treasury officials.
Treasury Secretary Scott Bessent said the authorization was tied to commitments made by Iran during the negotiations. “As part of the framework, Treasury has issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian oil,” Bessent said in a statement posted on X. He added that Iran had committed to allowing free transit through the Strait of Hormuz and permitting inspectors from the International Atomic Energy Agency (IAEA) to operate in the country.
According to the license, authorized activities include the export, shipping, insurance, transportation and financing of Iranian-origin oil and petroleum products. The measure also permits related banking transactions and allows payments in U.S. dollars. U.S. officials said the authorization extends to imports necessary to complete approved sales and deliveries. Countries subject to separate U.S. sanctions regimes, including North Korea and Cuba, remain excluded from the arrangement.
The move represents one of the most significant relaxations of U.S. restrictions on Iranian oil exports since sanctions were reimposed in 2018. Prior to those measures, Iran was a major supplier to several Asian and European markets. U.S. officials said the current authorization is temporary and linked to progress in ongoing negotiations.
Vice President JD Vance said last week that the agreement is performance-based and that Iran’s access to economic benefits depends on compliance with the terms of the memorandum. President Donald Trump also warned on Tuesday that Tehran must adhere to the agreement if further progress is to be made toward a final settlement, according to statements from the White House.
Oil markets reacted quickly to the announcement. Crude prices fell after traders assessed the prospect of additional Iranian supply entering the market, according to market data and analysts. However, industry participants in Asia said many refiners had already secured alternative supplies and were evaluating the practical implications of the temporary waiver. China is expected to remain a major destination for Iranian crude during the license period, industry sources said.
As of Tuesday, U.S. and Iranian negotiators continued discussions on a broader agreement. Treasury officials said the license will remain in effect through Aug. 21 unless modified or extended, while both sides pursue a longer-term arrangement.
