US Drops Iran Oil Sanctions for 60 Days in Shock War-End Deal
The United States has temporarily lifted sanctions on Iranian oil exports for 60 days, allowing Tehran to sell crude on the global market as part of a preliminary agreement to end the war between the two countries.
The Treasury Department issued a 60-day license on Monday authorizing "the production, delivery, and sale of crude oil, petrochemical products, and petroleum products of Iranian origin" until August 21, 2026 [179721]. The move marks a major shift in US policy, giving Iran access to market prices after years of selling at a discount to avoid American penalties [179721].
Vice President JD Vance confirmed that Iran has agreed to allow International Atomic Energy Agency (IAEA) inspectors back into the country, calling it "a major milestone" and "the first step toward permanent denuclearization" [179721][179124]. He also stated that the Strait of Hormuz, a critical waterway for global oil shipments, is now open [179721].
The decision follows progress in nuclear negotiations and talks about reopening the strait, which had been blocked by Iranian attacks, driving up energy and food prices worldwide [179074][174793]. Technical teams will continue discussions in the coming weeks to finalize a broader agreement [179721].
The license does not authorize transactions involving North Korea, Cuba, or certain regions of Ukraine [179721]. The US wants any future unfrozen Iranian assets to go to the Iranian people, not to fund terrorism [179721].
Oil prices stayed lower after the waiver was announced, as markets responded to signs of de-escalation between the two countries [179422].