The United States has temporarily lifted key sanctions on Iranian crude oil for 60 days, citing progress in cease-fire talks with Iran. The move is a reciprocal step after Iran promised to resume International Atomic Energy Agency (IAEA) inspections and keep the Strait of Hormuz open.
U.S. Treasury Secretary Scott Bessent said in a post on social media platform X (formerly Twitter) on the 22nd, local time, "As a result of productive talks held in Switzerland, Iran agreed to ensure free and open navigation in the Strait of Hormuz and to accept the reentry of IAEA inspectors," adding, "The Treasury has issued a 60-day temporary general license allowing the production, delivery, and sale of Iranian crude oil."
The measure follows the first follow-up talks held in Switzerland after the United States and Iran signed a cease-fire memorandum of understanding (MOU). The United States positively assessed Iran's decision to allow IAEA inspections and to keep the Strait of Hormuz open, and decided to suspend some sanctions until a final agreement is reached.
Vice President JD Vance, who led the U.S. negotiating team, said at a news conference after the talks, "Iran agreed to invite the IAEA inspectors back into the country," noting, "The inspection team is scheduled to begin operations this week." Vance also explained, "We have established mechanisms to keep the Strait of Hormuz open and a consultative framework to prevent conflicts in the region, including Lebanon."
The license issued by the Treasury is valid until 12:01 a.m. on Aug. 21, Eastern time. As a result, Iran will be able to officially sell its crude oil during the period and receive payment in dollars.
Markets expect the measure to give significant breathing room to Iran's economy. Until now, because of U.S. sanctions, Iran has used a so-called "shadow fleet" to reroute sales of crude to countries such as China at discounted prices. But with this waiver allowing sales at international prices, export revenue is expected to rise sharply.
In particular, the fact that dollar settlements are allowed stands out. The United States in March partially allowed the sale of Iranian crude stored at sea but blocked dollar transactions. With this step enabling foreign currency inflows, it is expected to provide some relief to Iran's economy, which has suffered from a surging exchange rate and a shortage of foreign reserves.
However, the actual scale of export growth is uncertain. During the war, U.S. naval blockades pushed crude storage to capacity, and there is speculation that production at some oil fields may have been halted.