U.S. Suspends Iran Oil Sanctions for 60 Days Amid Talks
The United States has temporarily suspended long-standing sanctions on Iranian crude oil sales for 60 days, marking the first time in decades that Iran has been permitted to sell oil in U.S. dollars, including to American buyers.
The U.S. Department of the Treasury announced on June 22 that it would pause sanctions related to Iranian crude oil transactions to facilitate negotiations on the reopening of the Strait of Hormuz, the resolution of issues surrounding Iran's nuclear program, and potential further sanctions relief.
Under a 60-day General License issued by the Treasury Department, U.S. sanctions covering Iranian crude oil and related petroleum products have been suspended until August 21, 2026. The measure applies to the production, delivery, and sale of Iranian-origin crude oil, petrochemical products, and refined petroleum products.
The temporary authorization allows Iran to sell oil to any buyer, including entities in the United States, while excluding transactions involving Cuba, North Korea, and Ukraine.
The license also explicitly permits transactions denominated in U.S. dollars or settled using dollar-based funding. Related restrictions affecting banking, shipping, insurance, and other services connected to such trade have likewise been waived during the authorized period, facilitating commercial transactions.
The authorization took effect immediately. Following the announcement, Iranian oil tankers began departing ports, and market participants expect Iran could increase exports rapidly. International oil prices declined notably after the news was released.
The move represents Iran's first broad oil-export waiver since the United States imposed sanctions on Iran's oil sector in 2012 and since the Trump administration withdrew from the Joint Comprehensive Plan of Action (JCPOA) in 2018 and reinstated its "maximum pressure" campaign.
The United States first imposed sanctions on Iran in 1979. Some restrictions were temporarily lifted following the signing of the 2015 nuclear agreement. However, Washington restored comprehensive sanctions on Iran's energy sector in 2018, including prohibitions on the use of U.S. dollars in oil-related transactions with Iran and the use of secondary sanctions targeting companies with ties to the U.S. financial system.
According to the announcement, the current waiver is a temporary measure linked to a U.S.-Iran memorandum of understanding and follow-up arrangements reached after the Lake Lucerne summit. The framework is intended to support efforts to end recent hostilities, reopen the Strait of Hormuz, and provide economic incentives during a 60-day period of final nuclear negotiations.
Former President Donald Trump stated that the authorization could be revoked if Iran fails to meet commitments related to its nuclear obligations, freedom of navigation through the Strait of Hormuz, or ceasefire arrangements.