Under the new arrangement, Iran will be permitted to produce, sell, transport and export crude oil, petroleum products and related derivatives until August 21, 2026. The temporary authorization was disclosed by the US Treasury Department on Monday as part of broader efforts to advance negotiations focused on regional security, maritime stability and nuclear oversight.
The decision grants a 60-day general license allowing transactions involving Iranian oil and associated services, including transportation, insurance and banking activities that were previously restricted under US sanctions.
According to US officials, the measure is intended to create a conducive environment for continued diplomatic engagement while helping to ease tensions in the Middle East.
US Treasury Secretary Scott Bessent said the move was linked to commitments made by Iran during ongoing negotiations in Switzerland.
“In line with the ongoing productive talks in Switzerland, Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency (IAEA) inspectors into their country,” Bessent said.
“As part of the framework, Treasury has issued a temporary 60-day general license authorizing the production, delivery and sale of Iranian oil.”
The temporary waiver allows Iran to regain access to international oil markets after years of restrictions that limited its ability to export crude oil. The easing of sanctions is expected to increase global oil supply and could help stabilize energy prices, which have experienced volatility amid geopolitical tensions in the region.
Analysts say the Strait of Hormuz remains central to the negotiations due to its strategic importance to global energy trade. The narrow waterway serves as one of the world's most critical oil transit routes, carrying a significant portion of crude exports from Gulf producers to international markets. Any disruption to shipping activities in the strait often has immediate implications for global oil prices and energy security.
The Treasury Department noted that the suspension will remain in place until 12:01 a.m. Eastern Daylight Time on August 21, 2026, after which US authorities are expected to review the arrangement based on developments in the negotiations and Iran's compliance with agreed commitments.
The latest development marks one of the most significant shifts in US-Iran relations in recent years. Discussions between the two countries have reportedly focused on regional security, the future of Iran's nuclear programme, freedom of navigation in the Strait of Hormuz and measures aimed at reducing the risk of further conflict in the Middle East.
The announcement was welcomed by global energy markets, with oil prices declining following news of the sanctions waiver as traders anticipated increased Iranian crude supplies entering the market in the coming weeks.
While the sanctions relief is temporary, observers believe it could serve as an important confidence-building measure between Washington and Tehran as both sides work toward a broader agreement addressing long-standing disputes over security, energy cooperation and nuclear inspections.