US authorizes sale of Iranian oil after ‘productive’ talks in Switzerland | Today’s news
The United States on Monday eased long-standing sanctions against Iran by allowing the sale of Iranian oil, a move aimed at speeding up negotiations toward a broader peace deal with Tehran. In exchange, Iran is expected to commit to nuclear inspections and ensure free passage through the strategically important Strait of Hormuz, Reuters reported.
Under a general license announced by the US Treasury Department, the sale of Iranian crude oil, as well as petroleum and petrochemical products originating in Iran, will be permitted until August 21.
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The license says Iranian crude can be imported into the U.S. when necessary to complete its sale, delivery or offloading. The US has not meaningfully imported Iranian oil since Washington imposed the measures after the 1979 revolution.
“In line with ongoing productive talks in Switzerland, Iran has committed to free and open transit in the Strait of Hormuz and to allowing International Atomic Energy Agency (IAEA) inspectors into their country,” Treasury Secretary Scott Bessent wrote on X.
“As part of this framework, the Ministry of Finance has issued a temporary 60-day general license that authorizes the production, supply and sale of Iranian crude oil.”
Under a memorandum of understanding signed last week, Washington agreed to grant exemptions allowing the export of Iranian oil, petroleum products and derivatives, as well as related services, including banking, insurance and transportation.
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The license also authorizes payments to Iran in US dollar-denominated funds.
However, the authorization does not apply to certain jurisdictions, including Cuba, North Korea and Crimea, which remain excluded from the arrangement.
Sanctions
Washington first imposed sanctions on Iran in 1979 when revolutionary students seized the US embassy in Tehran and held diplomats hostage. Since then, numerous additional sanctions have been imposed over Iran’s nuclear program and support for groups the US considers terrorist organizations, Reuters reported.
Independent Chinese refiners have been the main buyers of sanctioned Iranian oil, enjoying deep discounts as others have avoided such purchases. India, South Korea, Japan, Italy, Greece, Taiwan and Turkey were also major buyers of Iranian oil before US sanctions were reimposed in 2018.
Read also | China has ordered companies to ignore US sanctions on Iranian oil
Mediators said on Monday that Washington and Tehran had made “encouraging progress” in the first round of talks aimed at reaching a final peace deal. The talks began in line with a memorandum of understanding struck last week to extend a tenuous April ceasefire for at least another 60 days.
Oil prices surged as Tehran began blocking the Strait of Hormuz, prompting a US blockade of Iranian ports, but fell to their lowest level since before the start of the war on February 28 with US-Israeli attacks on Iran after the interim deal.
Quick answers to key questions
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The US Treasury has issued a 60-day license that waives sanctions on Iranian oil and allows its production, supply and sale as part of an interim agreement to end the war in Iran.
The waiver is significant because it demonstrates a willingness to negotiate and ease economic pressures on Iran, which may allow for a more favorable environment for a final peace deal.
The exemption from Iranian oil sanctions will last for 60 days, until August 21.
The purpose of the talks was to pave the way for a permanent end to the ongoing war in Iran and to discuss key issues such as the lifting of sanctions and the resolution of hostilities in Lebanon.
Continued negotiations may be essential to achieving a lasting peace agreement, although external pressures and declarations may complicate the diplomatic process.
(With inputs from Reuters)
