US Treasury issues 60-day license for Iranian oil sales

US Treasury Issues 60-Day License Authorizing Iranian Oil Sales

The U.S. Treasury Department on Monday issued a sweeping 60-day general license authorizing the production, delivery, and sale of Iranian crude oil, petrochemicals, and petroleum products through August 21, in what amounts to the broadest sanctions waiver on Iranian energy exports since restrictions were first imposed decades ago.

A Framework From Switzerland

Treasury Secretary Scott Bessent announced the move in a post on X, stating, “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 the license follows “productive talks” between Washington and Tehran conducted in Switzerland over the weekend.cnbc

The license, designated Iran General License X by the Treasury’s Office of Foreign Assets Control, permits transactions related to the production, sale, delivery, offloading, shipping, insurance, and bunkering of Iranian-origin crude oil and petroleum products. It also authorizes U.S. dollar-denominated payments for purchases and allows the importation of Iranian oil into the United States — a step not taken since sanctions were imposed after the 1979 revolution.usnews

The authorization does not permit transactions involving North Korea or Cuba.usnews

Iran’s Commitments

In exchange, Iran has made several concessions. Vice President JD Vance told reporters at the Bürgenstock resort in Switzerland on Monday that Tehran agreed to invite International Atomic Energy Agency inspectors back into the country, calling it “a major milestone for the American people and the first step in permanently ending a nuclear weapons program in Iran.”timesofisrael

Bessent added that Iran committed to ensuring “free and open transit in the Strait of Hormuz.” Vance noted that the U.S. negotiating team had worked alongside Qatari and Pakistani counterparts and made “great progress” on Sunday, with technical negotiations set to continue.news

Context and Market Implications

The license builds on earlier, narrower waivers. In March, the Treasury issued General License U, a 30-day authorization limited to Iranian oil already loaded onto vessels, which released roughly 140 million barrels into global markets. Monday’s action goes further by permitting new production and sales rather than merely clearing existing shipments.cnbc

Last Thursday, the U.S. Navy lifted its blockade on Iran’s ports, and Iranian supertankers reactivated their transponders as they departed the Persian Gulf. Under the agreement, Iran is required to allow ships to transit the Strait of Hormuz without tolls for 60 days.mezha

The license fulfills commitments outlined in a memorandum of understanding signed last week, which stipulated that the United States would “grant waivers for the exportation of Iranian crude, petroleum, and derivatives as well as all related services, including banking transactions, insurance, and transportation.”nytimes