WASHINGTON — The United States cleared the way for Iran to sell oil , including to US buyers, easing decades-old sanctions as Vice President JD Vance said Tehran had agreed to allow nuclear inspectors to return as early as this week, the Wall Street Journal reported.
The Treasury Department on Monday waived longstanding sanctions on those sales for 60 days while talks to` reopen the Strait of Hormuz and address the issues of Iran’s nuclear program and further sanctions relief proceed.
Global energy markets reacted immediately to the announcement, with oil prices falling by more than three percent as traders anticipated additional Iranian supply entering global markets.
The 60-day general license issued by the US Treasury Department, which allows the sale of oil and petrochemical and petroleum products of Iranian origin, remains in effect through August 21 and aligns with the timeline of an interim agreement aimed at securing a final peace deal between Washington and Tehran.
The license says Iranian oil can be imported into the US when necessary to complete its sale, delivery or offloading. The US has not meaningfully imported Iranian oil since Washington imposed measures after the 1979 revolution.
“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,” Treasury Secretary Scott Bessent wrote on X.
“As part of the framework, Treasury has issued a temporary 60-day general license authorizing the production, delivery and sale of Iranian oil.”
Under a memorandum of understanding signed last week between Washington and Tehran, the US agreed to issue waivers for the export of Iranian crude oil, petroleum products and derivatives, and all associated services, including banking transactions, insurances and transportation.
Payment of funds to Iran may be made in US dollar-denominated funds, according to the license.
Cuba, North Korea and Crimea are among those excluded from the license.
For years, Iran used a shadowy network of tankers under sanctions to sell its crude.
Independent Chinese refiners have been the main buyers of sanctioned Iranian oil, taking advantage of deep discounts as others avoided such purchases. India, South Korea, Japan, Italy, Greece, Taiwan and Turkey were also major buyers of Iranian crude before US sanctions were reimposed in 2018.
Washington first sanctioned Iran in 1979 when revolutionary students seized the US embassy in Tehran, holding diplomats hostage. Numerous additional sanctions have been imposed since then over the nuclear program and Iran’s support for groups the US deems terrorist organizations.
Source: Saudi Gazette