U.S. Treasury Issues Two-Month Waiver for Iranian Oil Production and Sales

The U.S. Treasury Department issued a two-month sanctions waiver on Monday authorizing the production, delivery and sale of Iranian crude oil and petrochemical and petroleum products. The waiver remains valid through August 21.

The general license allows payments in U.S. dollars to the government of Iran or previously sanctioned Iranian entities for oil purchases. It excludes any transactions involving North Korea, Cuba or Russian-occupied parts of Ukraine.

Treasury Secretary Scott Bessent stated that the waiver resulted from ongoing talks between U.S. and Iranian officials in Switzerland. Bessent said Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency inspectors into the country.

A memorandum of understanding reached last week established a 60-day window for nuclear talks. The memorandum states that Washington will terminate all types of sanctions against Tehran as part of any final agreement. Iran is now permitted to sell oil to the global market for the next 60 days.

A number of tankers are already en route to purchase Iranian oil. The Strait of Hormuz handled 20 percent of the world’s oil traffic before the war. Both Republicans and Democrats have voiced concern over granting upfront sanctions relief before Iran makes concessions on its nuclear program.

Miad Maleki, a former Treasury official now at the Foundation for Defense of Democracies, wrote that the two-month period does not give buyers, banks and shippers enough time to rebuild durable access to Iranian oil.