The United States has officially authorised the production, delivery, and sale of Iranian crude oil for a 60-day period, easing decades-old sanctions as diplomatic efforts towards a final peace agreement with Tehran intensify.
The general license, announced by the US Treasury Department on Monday, permits the sale of Iranian crude, petrochemicals, and petroleum products until 21 August. This temporary “thaw” follows what officials described as “productive talks” held in Switzerland over the weekend.
Strategic commitments and nuclear inspections
Treasury Secretary Scott Bessent confirmed the move on the social media platform X, stating that the authorisation is part of a broader framework in which Iran has committed to permitting International Atomic Energy Agency (IAEA) inspectors into the country.
Tehran has also pledged to ensure free and open transit through the Strait of Hormuz.
Under a memorandum of understanding (MoU) signed on 17 June, the US agreed to issue waivers for the export of Iranian oil and derivatives, alongside associated services such as banking transactions, insurance, and transportation.
Payments to Iran may now be conducted in US dollar-denominated funds, although the license specifically excludes transactions involving Cuba, North Korea, and Crimea.
Naval movements and regional security US Vice President JD Vance noted that “great progress” was made during the Swiss negotiations, despite conflicting reports over the weekend regarding the status of the Strait of Hormuz.
While Iran claimed to have closed the waterway, US Central Command maintained it remained open.
The US Navy lifted its blockade of Iranian ports and coastal areas last Thursday. Since then, Iranian supertankers have reportedly reactivated their transponders as they depart the Persian Gulf loaded with oil.
Under the current agreement, Iran must allow toll-free transit through the strait for 60 days, with future administrative arrangements to be discussed later with Oman and other Gulf states.
A complex conflict spanning decades
The current diplomatic breakthrough follows months of intense military and economic conflict that began earlier this year. Hostilities officially commenced on 28 February 2026, initiated by joint US-Israeli attacks on targets within Iran.
This military action quickly escalated into a global energy crisis as Tehran retaliated by blockading the Strait of Hormuz, a critical maritime corridor through which approximately 20 per cent of the world’s crude oil supply passes.
In response to the Iranian blockade, the United States imposed a naval blockade of Iranian ports and coastal areas in April.
This strategic move effectively crippled Iran’s petroleum exports; prior to the April blockade, the Islamic Republic typically loaded over 1.5 million barrels per day (bpd), with the majority destined for independent refiners in China.
By May, however, these exports had plummeted to just 260,000 bpd. The ensuing disruption was described as the largest oil supply shock in history, causing ship traffic through the Strait of Hormuz to drop from over 100 vessels daily to a fraction of that number.
The path to the current 60-day easing of measures was paved by a tenuous ceasefire established in April, which has now been extended under the terms of the MOU signed on 17 June.
This agreement follows decades of strained relations dating back to the 1979 Islamic Revolution, when revolutionary students seized the US Embassy in Tehran and held diplomats hostage. Since then, Washington has maintained a complex web of sanctions targeting Iran’s nuclear programme and its support for various regional groups.
Before the 2018 reimposition of sanctions, nations such as India, South Korea, Japan, and several European states were major purchasers of Iranian crude – a market the current administration is now tentatively reopening.
Recent data from Kpler indicates a gradual recovery in maritime activity, with 35 transits recorded on Saturday, although confusion regarding the status of the strait led to a decline to 17 crossings on Sunday.
