U.S. Lifts Some Iran Oil Sanctions Through August While Hormuz Remains Restricted and SPR Hits 43-Year Low

The Treasury Department announced June 22 that it would lift sanctions on Iranian oil and oil products under a general license that permits production, delivery and sales through August 21. The license also authorizes imports of Iranian-origin crude, petrochemicals and petroleum products into the United States when required to complete transactions.

Vice President JD Vance, who traveled to Switzerland over the weekend to meet Iranian officials and mediators, stated that “we made a lot of good progress” during the talks.

The meetings form part of a 60-day negotiation period established in a preliminary deal signed the previous week. Washington Examiner reported that the sanctions relief could allow Tehran to earn nearly $8 billion over two months. Tankers moved about 20 million barrels of crude through the Strait of Hormuz from June 19 to 21, the fastest pace recorded since the war began in late February, according to data compiled by Bloomberg.

Iran announced June 20 that it would close the strait after Israeli strikes on Lebanon. More than 400 large ships were awaiting full reopening as of June 22, the Financial Times reported. Iran’s Persian Gulf Strait Authority has required additional permits and insurance for passage, and reports indicate mines have been placed along the route.

An explosion and fire at Qatar’s Barzan natural gas plant in Ras Laffan on June 21 killed 13 people and injured 66. Qatar’s energy minister Saad Sherida al Kaabi confirmed the incident was an accident that occurred while workers restarted the facility, which had been shut down since December.

Iran struck the Ras Laffan Industry City in mid-March, reducing about 17 percent of Qatar’s export capacity and costing QatarEnergy nearly $20 billion in annual revenue.