The United States Treasury on Monday issued a temporary general licence permitting transactions involving Iranian crude oil, petrochemicals and petroleum products until 21 August 2026. The authorisation, published by the Office of Foreign Assets Control, covers production, delivery, sale and—where necessary to complete a transaction—importation into the United States, and allows payments in US dollars. It explicitly excludes dealings with North Korea, Cuba and Crimea. Global oil benchmarks fell sharply on the announcement, with Brent crude dropping more than 3% to around $77.80 a barrel, retreating from the triple-digit levels reached during the peak of the conflict.

Washington presented the move as a reciprocal step under the memorandum of understanding signed with Tehran the previous week. Treasury Secretary Scott Bessent wrote on social media that Iran had committed to “free and open transit in the Strait of Hormuz” and to permit International Atomic Energy Agency inspectors into the country. US Vice President JD Vance, speaking from the Bürgenstock resort in Switzerland where talks are being held, described the inspection commitment as “a major milestone” and a first step toward permanent denuclearisation. Mediators Pakistan and Qatar said the first round of negotiations had produced “encouraging progress” and a roadmap for a final agreement within 60 days.

Tehran’s characterisation of the licence differed. The Iranian foreign ministry spokesman said only a “very brief discussion” on the nuclear file had taken place and that nuclear negotiations had not yet begun. Iran’s embassy in Rome stated that the 60-day authorisation was “not a concession” but a US commitment under what it termed the Islamabad agreement, adding that access to oil revenues was “an inalienable right of the Iranian people.” Israeli leaders, meanwhile, have voiced deep reservations about the broader diplomatic framework and insist their forces will remain in southern Lebanon, where clashes with Hezbollah have repeatedly threatened to unravel the ceasefire.

The licence does not lift the architecture of US sanctions, which have been built up since the 1979 hostage crisis and tightened after Washington’s 2018 withdrawal from the nuclear accord. It is a time-limited general authorisation that temporarily removes legal risk for shippers, insurers and financial intermediaries, potentially reopening channels that had shrunk Iranian exports to a fraction of their pre-war levels. Congressional Republicans have warned that sanctions relief and asset unfreezing risk repeating what they view as mistakes of the Obama-era nuclear deal. Technical teams from both sides remain in Switzerland to work on implementation mechanisms, with the licence set to expire on 21 August unless extended as part of a final settlement.