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US-Iran deal allows Tehran to immediately sell oil upon signing, says US official

AL-MONITOR
Jun 16, 2026
FILE PHOTO: Cargo ships in the Gulf, near the Strait of Hormuz, as seen from northern Ras al-Khaimah, near the border with Oman’s Musandam governance, amid the U.S.-Israeli conflict with Iran, in United Arab Emirates, March 11, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Cargo ships in the Gulf, near the Strait of Hormuz, as seen from northern Ras al-Khaimah, near the border with Oman’s Musandam governance, amid the U.S.-Israeli conflict with Iran, in United Arab Emirates, March 11, 2026. REUTERS/Stringer/File Photo — Stringer

WASHINGTON, June 16 (Reuters) - The U.S. will allowIran to immediately begin selling oil and fuel under the memorandum of understanding the two sides reached to end the war, a senior U.S. official said on Tuesday.

The provision for waiving sanctions on Iranian oil sales takes effect once the agreement is signed this week and also covers services including banking, transportation and insurance to facilitate the sales, the source said.

The U.S. official said the agreement has conditions.

“This is a performance-based agreement," the person said on condition of anonymity. "Iran can only access any benefits of the MOU if they abide by all of the points they agreed to – including no nuclear weapon, neutralizing its enriched material, and not interfering with the free flow of navigation in the Strait of Hormuz.”

(Reporting by Timothy Gardner Ryan Patrick Jones in Toronto; Editing by Daphne Psaledakis, Caitlin Webber, Alexandra Hudson)