The U.S. Treasury Department has authorized the sale of Iranian oil until at least the end of August, following what the White House described as “productive talks” between Iran and the U.S. in Switzerland.
According to a June 22 post to X from Treasury Secretary Scott Bessent, the Treasury has issued a 60-day authorization for the production, delivery and sale of Iranian oil. As part of that framework, Iran would agree to free and open transit through the Strait of Hormuz, and to allow International Atomic Energy Agency inspectors into their country.
Before the U.S. began blockading the strait in April, Iran loaded roughly 1.5 million barrels of oil for export daily, the majority of which went to China. With the U.S. temporarily lifting its sanctions on Iranian oil, the Middle Eastern nation will now temporarily be allowed to sell oil using U.S. dollars, while U.S. importers will be allowed to buy Iranian crude oil, petrochemical products and petroleum products.
The U.S. and Iran have been engaging in larger negotiations to end the conflict for days. On June 18, the two sides signed a memorandum of understanding, where the U.S. agreed to lift its sanctions against Iran, unfreeze Iranian assets, and end its blockade of the Strait of Hormuz. In return, Iran agreed to allow safe passage through the strait without tolls or fees for 60 days.
However, talks have since soured, with Iran declaring the strait closed once again on June 20, over accusations that Israel had violated the ceasefire’s terms by continuing its attacks in Lebanon. In a June 21 post to his Truth Social platform, President Donald Trump accused Iran of using “highly-paid proxies” to continue the conflict in Lebanon, and threatened to resume military strikes if they failed to resolve the situation soon.
