US Grants 60-Day Iran Oil Sanctions Waiver, Allowing Transport And Purchase Of Crude

The United States has temporarily eased sanctions on Iran’s oil sector, allowing buyers to purchase Iranian crude oil, petroleum products and petrochemicals without facing U.S. sanctions for the next 60 days.

The move is expected to support Iran’s oil exports and could increase tanker activity as negotiations between Washington and Tehran continue.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) on Monday issued a general licence that remains valid until 21 August.

It allows transactions involving Iranian crude oil, refined petroleum products and petrochemicals that are normally banned under U.S. sanctions. Buyers can also make payments in U.S. dollars.

The waiver follows the 18 June memorandum of understanding signed by the United States and Iran.

It also comes after another round of direct talks in Switzerland on Sunday, where U.S. Vice President JD Vance, who led the American delegation, said the discussions made “very good progress.”

Treasury Secretary Scott Bessent said the temporary licence is part of the agreement reached during the ongoing negotiations.

“In line with the ongoing productive talks in Switzerland, Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency (IAEA) inspectors into their country,” Bessent said on X.

“As part of the framework, Treasury has issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian oil.”

The 60-day licence matches the negotiation period agreed under the memorandum of understanding, which covers Iran’s nuclear programme, the Strait of Hormuz and other issues.

The talks can be extended beyond the 60 days if both sides agree. If negotiations break down, the sanctions waiver could also be withdrawn before it expires.

The licence allows transactions related to the production, sale, delivery and offloading of Iranian crude oil, petroleum products and petrochemicals. Although sanctions remain in place on Iranian sellers, buyers are protected from U.S. sanctions during the waiver period.

The licence also allows companies to provide services needed to transport Iranian oil. These include vessel management, crewing, bunkering, pilotage, registration, flagging, insurance, classification and salvage. It also allows Iranian oil to be carried on tankers that remain on the U.S. sanctions list.

In addition, the licence permits imports of Iranian crude oil into the United States for later re-export or trans-shipment.

The temporary waiver marks one of the biggest relaxations of U.S. oil sanctions on Iran since the 1979 Islamic Revolution.

Analysts say it could significantly increase Iran’s oil revenue by allowing it to sell more crude and possibly at higher prices.

According to analysts, around 67 million barrels of Iranian crude currently stored on tankers in the Gulf could now enter the market. Those cargoes could generate between $8 billion and $9 billion in revenue if sold during the waiver period.

The licence also allows Iran to receive oil payments directly through its central bank instead of relying on intermediary financial channels. It also permits dollar-denominated transactions, removing one of the biggest barriers to Iranian oil trade.

Before the waiver, most Iranian crude was sold to a small group of independent Chinese refiners that continued buying despite U.S. sanctions. The new licence could encourage purchases by China’s state-owned refiners as well as buyers in India and other Asian countries.

However, analysts say many buyers are still being cautious because the waiver is only valid for 60 days and could be cancelled if tensions between the United States and Iran rise again.

Companies that have not previously bought Iranian crude are also carrying out compliance checks before making purchases.

Maritime intelligence firm Windward said Iran exported 6.79 million barrels of crude last week, the highest weekly level in two months, as negotiations between Washington and Tehran progressed.

China currently buys about 90% of Iran’s oil exports, mostly through independent “teapot” refineries.

Analysts expect Chinese demand to increase under the temporary waiver, although buying decisions will still depend on prices, available cargoes and internal company approvals.

Some analysts also believe Iran may use the 60-day period to repair oil facilities damaged during the recent conflict and sign longer-term supply contracts with Chinese buyers.

The sanctions relief is linked to negotiations that include keeping the Strait of Hormuz open for international shipping.

The U.S. government has said the waterway has reopened under the ceasefire framework, although Iran’s military said over the weekend that it was closing the strait again.

References: The Hill, Argus Media