The US Department of the Treasury announced on Monday that it is temporarily suspending sanctions against Iran to allow the Islamic Republic to produce, sell and deliver crude oil and related products until 21 August.
According to a licence published by the Treasury, all transactions previously prohibited involving the production, sale and transportation of Iranian crude oil are now permitted until 12:01 a.m. on 21 August 2026.
The Treasury Department oversees the United States’ sanctions regime and financial restrictions.
Oil trade restrictions eased
The temporary authorisation effectively allows Iran to resume a range of oil-related activities that had been restricted under US sanctions policy.
The move is seen as a significant shift in enforcement, although it is time-limited and subject to the conditions outlined in the official licence.
Conditions linked to negotiations
US Treasury Secretary Scott Bessent cited Iran’s commitment in ongoing negotiations as a key factor behind the decision.
He referred to Tehran’s pledges regarding “free and open passage” in the Strait of Hormuz, as well as allowing inspectors from the International Atomic Energy Agency to enter the country.
The suspension is linked to ongoing diplomatic discussions involving Iran and the United States, aimed at reducing tensions and addressing nuclear and regional security issues.
Ongoing developments
The decision comes amid broader talks between the two sides on sanctions relief and regional stability, with further developments expected as negotiations continue.
Also read: Iran: Formation of four working groups in talks with the US
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