US Partially Relaxes Iran Oil Sanctions Amid Encouraging Diplomatic Talks

US Lifts Partial Sanctions on Iranian Oil Exports

The US Treasury Department has issued a 60-day sanctions waiver, allowing for the production, delivery, and sale of Iranian oil to the US. The move is part of a memorandum of understanding (MoU) signed by Tehran and Washington on June 17.

According to the US Treasury Secretary Scott Bessent, several stipulations outlined in the MoU are moving forward. These include Iran’s commitment to free and open transit in the Strait of Hormuz and permission for International Atomic Energy Agency (IAEA) inspectors into their country.

The waiver, which lasts through August 21, covers crude oil, petrochemical products, or petroleum products of Iranian origin. It permits Iranian oil to be imported into the US but does not authorize transactions involving US-sanctioned North Korea or Cuba, or Russian-occupied Ukraine.

US Vice President JD Vance expressed optimism over the Tehran-Washington discussions in Switzerland, stating that a “good foundation” has been laid for a final deal. He noted that despite some online tensions between President Donald Trump and top negotiator Mohammad Bagher Ghalibaf, the talks continued and made progress.

Mediators at the talks reported encouraging progress at the first round, according to Reuters. The vice president did not provide a firm timeline for when nuclear inspections may start, but said conversations with the IAEA could occur as soon as Monday.

The waiver comes amid an increase in oil and gas tanker traffic through the Strait of Hormuz, which was previously closed due to Israeli attacks on Lebanon. Four Qatari-operated LNG tankers entered the strait on Monday, while two supertankers carried crude oil into the Gulf.

Source: Al Jazeera