US temporarily eases sanctions on Iranian oil sector under new understanding with Tehran

The United States has suspended key sanctions on Iran’s oil sector for 60 days, marking the first major economic measure implemented under the recently announced Islamabad Memorandum of Understanding between Washington and Tehran.

The US Treasury Department announced on Monday the issuance of a temporary general licence authorising transactions related to the production, sale, transport and delivery of Iranian oil and petroleum products until 21st August 2026.

The measure also covers petrochemical products of Iranian origin and permits associated financial transactions and payments connected to authorised activities.

US Treasury Secretary Scott Bessent said the decision was linked to ongoing diplomatic efforts between the two countries.

READ: Iran exports 36M barrels of oil since US-Iran agreement announced

The move comes “in line with the productive talks taking place in Switzerland,” Bessent said, adding that Iran had committed to maintaining freedom of navigation through the Strait of Hormuz and granting inspectors from the International Atomic Energy Agency access to the country.

According to the Treasury secretary, the department issued a temporary 60-day licence authorising the production, transport and sale of Iranian oil as part of the understandings reached between the two sides.

Documents issued by the Treasury Department’s Office of Foreign Assets Control (OFAC) indicate that the licence allows the resumption of a broad range of activities necessary for the operation of Iran’s energy sector.

These include shipping services, insurance, vessel management, maritime registration, refuelling operations, salvage services and logistical support connected to the production and export of Iranian oil and petroleum products.

READ: Vance reiterates claim Iran agreed to nuclear inspections, Tehran denies