US Issues Sweeping 60-Day Iran Oil Sanctions Waiver as Peace Talks Advance

A sweeping reversal, four decades in the making

The U.S. Treasury on Monday issued what analysts called the most sweeping rollback of American oil sanctions against Iran since the 1979 Islamic Revolution, granting a 60-day general licence — General License X — allowing Iranian crude oil, petrochemicals, and petroleum products to be produced, sold, and settled in U.S. dollars through August 21apnews +1. Vessels and entities previously subject to U.S. sanctions are also cleared, and the licence theoretically reopens the door to direct U.S. imports of Iranian crude, a trade that effectively collapsed in the 1990scnbc.

Treasury Secretary Scott Bessent tied the move to commitments secured during the Lake Lucerne Summit in Switzerland. "Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency inspectors into their country," Bessent said in a post on Xaljazeera. Iran's foreign ministry quickly contradicted the inspection commitment, insisting Tehran had made "no new commitments" on nuclear sites and that any IAEA engagement would follow existing parliamentary proceduresbbc.

Billions unlocked, markets respond

The licence could free a floating inventory of around 67 million barrels of Iranian crude stranded in the Gulf, worth a potential windfall of $8 to $9 billion, according to former Treasury sanctions official Miad Malekicnbc. Iranian crude exports had already reached 6.79 million barrels in the prior week — a two-month high — according to maritime intelligence firm Windwardcnbc.

Markets moved swiftly. Brent crude fell 3.2% to $77.52 per barrel and U.S. benchmark crude dropped 2.6% to $73.86 per barrel on Mondayapnews. With dollar-denominated clearing now authorized, analysts expect China — which buys roughly 90% of Iranian exports — to accelerate purchases through banking channels it previously had to circumventcnbc.

Trump's deal and the 60-day clock

President Trump defended the move from the Oval Office, saying any oil proceeds would go toward American agricultural goods rather than Iran's military. "Money that's being unfrozen is going to be used to buy food, bought exclusively through the United States from our farmers," he said, describing it as "a classic Trump deal"apnews. Iran's top negotiator Mohammad Ghalibaf said a separate agreement was also reached to release $12 billion in frozen Iranian assets on similar termsaljazeera.

The waiver flows from the Islamabad Memorandum of Understanding signed by both presidents on June 17, which set a 60-day window to reach a final peace dealapnews +1. Vice President Vance described the Switzerland talks as laying "a very good foundation" but cautioned no assets had been unfrozen yet and further relief would hinge on continued progressbbc. Trump added his own pressure: "If Iran doesn't live up to their agreement, or if they're not behaving, I will do what I have to do"bbc.