US to allow Iranian oil sales, easing decades-old sanctions, as peace talks continue
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The United States approved oil sales to Iran on Monday, easing decades of sanctions as it moves toward a final peace deal with Tehran in return for commitments to nuclear testing and free passage through the Strait of Hormuz.
The general license, announced by the Ministry of Finance, allows the sale of crude oil and petrochemical and petroleum products of Iranian origin until Aug. 21.
The license states that Iranian oil can be imported into the US if necessary to complete sales, delivery or loading. The US has not meaningfully imported Iranian oil since Washington imposed measures after the 1979 revolution.
“In accordance with the ongoing productive negotiations in Switzerland, Iran has committed to free and open access to the Strait of Hormuz and to allow International Atomic Energy Agency (IAEA) inspectors to enter their country,” Treasury Secretary Scott Bessent wrote in X.
“As part of the framework, the Ministry of Finance issued a 60-day temporary general license authorizing the production, delivery and sale of Iranian oil.”
Iran says it has closed the Strait of Hormuz, a key route for oil and gas exports to the world, citing alleged violations by the US and Israel. The move comes ahead of talks in Switzerland aimed at developing an interim agreement between Washington and Tehran.
Under a memorandum of understanding signed last week between Washington and Tehran, the US agreed to issue a freeze on exports of Iranian crude oil, petroleum products and derivatives, and all related services, including banking, insurance and transportation.
Payments to Iran can be made in US dollar currencies, according to the license.
Cuba, North Korea and Crimea are some of those that are not included in this license.
Washington began punishing Iran in 1979 when revolutionary students seized the US embassy in Tehran, arresting diplomats. There have been many additional sanctions since then over Iran’s nuclear program and support for groups the US considers terrorist organizations.
Private Chinese refiners have been the biggest buyers of sanctioned Iranian oil, using deep discounts as others avoid such purchases. India, South Korea, Japan, Italy, Greece, Taiwan and Turkey were also major buyers of Iranian crude before US sanctions were reinstated in 2018.
Mediators said on Monday that Washington and Tehran had made “encouraging progress” in the first round of talks aimed at reaching a final peace deal. The talks began under the terms of a memorandum of understanding reached last week to extend the strict ceasefire from April for at least another 60 days.
Oil prices rose sharply when Tehran began blocking the Strait of Hormuz, prompting the US to block Iranian ports, but after a temporary deal, they fell to their lowest level since before the war began in Feb. 28 for the US-Israeli attack on Iran.
