US grants Iran oil sanctions waiver as part of deal

WASHINGTON — The US Treasury Department on Monday issued a two-month waiver for Iranian oil sales following an initial round of talks between Iran and the United States. 

The so-called general license authorizes the production, delivery and sale of crude oil and petrochemical and petroleum products of Iranian origin through Aug. 21. It allows payments in US dollars to the government of Iran or blacklisted Iranian entities for oil purchases that would otherwise be prohibited under US sanctions. The waiver does not affect transactions involving North Korea, Cuba or Russian-occupied parts of Ukraine. 

Treasury Secretary Scott Bessent said the waiver was the result of ongoing, productive talks between US and Iranian officials 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 X.

The memorandum of understanding reached last week calls for the United States to waive sanctions on Iranian oil sales as part of an interim deal that would see Iran reopen the Strait of Hormuz, the waterway that handled 20% of the world’s oil traffic before the war. 

Both Republicans and Democrats have voiced concern over a deal that grants upfront sanctions relief to Iran before it makes concessions on its nuclear program. The MoU establishes a 60-day window for nuclear talks and says Washington will “terminate all types of sanctions” against Tehran as part of a final agreement. 

Miad Maleki, a former Treasury official who is a senior fellow at the Foundation for Defense of Democracies, wrote on X that the two-month waiver does not offer enough time for buyers, banks and shippers to rebuild durable access to Iranian oil. 

“The picture is clear though: production, sales, dollar payments, petrochemicals, and protected shipping — all switched on at once,” Maleki said. “Each piece on its own loosens the pressure. Together, they amount to a sustained reopening of Iran's most important revenue stream.”

Independent refineries called teapot facilities concentrated in China’s Shandong province are the primary buyers of Iranian crude. A senior Trump administration official briefing reporters last week defended the move to waive sanctions, saying the US restrictions weren't preventing Iran from exporting oil to China but instead forcing it to sell at a steep discount through opaque channels. 

“It’s not that significant in the scheme of things," the official said. "They were able to [sell oil] anyway by opening the strait, so we thought that was actually a fair concession to give them, as it also helps bring down global oil prices."

This developing story has been updated since initial publication.