In a major development for the Middle East’s energy and security landscape, the US Department of the Treasury on Monday issued a temporary 60-day general licence allowing transactions related to the production, transportation, and sale of Iranian crude oil, petroleum products, and petrochemicals. The move follows a significant diplomatic breakthrough aimed at easing regional tensions and reopening the critical Strait of Hormuz.
Under the licence, activities linked to the extraction, delivery, transport, and trade of Iranian-origin petroleum and petrochemical products will be permitted. According to the official order, all transactions previously restricted under US sanctions in relation to these sectors have been authorised until 12:01 a.m. Eastern Daylight Time on August 21, 2026.
60-day general licence
US Treasury Secretary Scott Bessent confirmed that the decision reflects the advancement of bilateral discussions currently underway 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 stated in a post on X.
“As part of the framework, Treasury has issued a temporary 60-day general licence authorising the production, delivery, and sale of Iranian oil,” he added.
This development aligns with commitments to provide waivers for the export of Iranian oil and derivatives, alongside essential supporting services, including insurance, maritime transport, and financial processing.
The authorisation further extends to the importation of Iranian-origin crude and petroleum products into the United States, provided such transactions are required to conclude sales or deliveries under the new waiver terms.
The Treasury Department clarified that these exemptions do not extend to dealings involving North Korea or Cuba, which remain under strict US sanctions regimes.
US-Iran talks
The US and Iran have agreed on a roadmap aimed at reaching a final agreement within 60 days after hours-long talks at the Swiss resort of Burgenstock, mediators Qatar and Pakistan said on Monday, describing the progress as “encouraging.”
In a joint statement, the mediators said that the talks were conducted in a “positive and constructive” atmosphere. “Encouraging progress has been made, including the creation of a mechanism for further technical talks,” the joint statement said.
The high-level talks at the Lake Lucerne Summit in Switzerland, held on Sunday and Monday, took place under the framework of the Islamabad Memorandum of Understanding (MoU) signed by the US and Iran on Thursday to advance negotiations on regional security and other contentious issues.
While the US team was led by Vice President JD Vance, the Iranian delegation was led by Parliament Speaker Mohammad Bagher Ghalibaf.
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