OBBURGEN: The United States said Monday it is temporarily lifting sanctions on Iran to allow the Islamic Republic to produce, sell and deliver crude oil and related products through August 21.
Treasury Secretary Scott Bessent cited Tehran's commitment in ongoing negotiations to "free and open transit" in the Strait of Hormuz and permission for International Atomic Energy Agency inspectors to enter their country as a reason for pausing the sanctions.
All transactions that were previously prohibited involving the production, sale, and transport of Iranian-origin crude oil "are authorized through 12:01 am eastern daylight time, August 21, 2026," according to a license published by the Treasury Department.
"Tireless Pakistani and Qatari mediation has delivered major progress to end Lebanon War," said Iran's Foreign Minister Abbas Araghchi. "Oil and petrochem exports are waived, blockade lifted, some frozen assets released, and major reconstruction & development plan launched for Iran."
Near 1405 GMT, Brent oil futures were down 3.3 percent at $77.91 a barrel.
Last week, Tehran and Washington signed a memorandum of understanding laying the groundwork for a 60-day round of negotiations, after nearly 40 days of fighting that was followed by weeks of an inconclusive and oft-breached ceasefire.
The license emerged Monday as US Vice President JD Vance said his lengthy talks with senior Iranian officials in Switzerland created a “good foundation for a successful final deal.” Negotiators are seeking a permanent end to the war that the US and Israel began in late February.