The United States on Monday temporarily suspended sanctions on Iranian oil after Vice President JD Vance said that Tehran had agreed to allow United Nations nuclear inspectors back into the country. This marks a significant step in ongoing negotiations between Washington and Iran.The move came days after the two sides signed a memorandum of understanding in Switzerland, laying the groundwork for broader talks aimed at easing tensions and reaching a long-term agreement on Iran’s nuclear programme and regional security issues.The US Treasury Department issued a temporary 60-day general licence authorising the production, delivery and sale of Iranian crude oil, petroleum products and petrochemicals through August 21.The licence also permits transactions related to the export and import of Iranian-origin oil and associated services, including banking, insurance and transportation.
US cites Hormuz access and nuclear inspections
US Treasury Secretary Scott Bessent said the decision was linked to commitments made by Tehran during the negotiations.“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 said 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. The Strait of Hormuz is one of the world’s most important energy shipping routes, carrying a significant share of global oil exports.The Treasury Department clarified that the licence does not apply to transactions involving North Korea or Cuba, which remain subject to separate US sanctions.
Vance calls agreement a major milestone
Speaking to reporters at the Burgenstock resort in Switzerland, Vice President JD Vance described the recent understanding between Washington and Tehran as an important breakthrough.“We laid a very good foundation for a successful final deal. The final deal is the house. We haven’t built the house, but we’ve laid a successful foundation to get to a good place for the American people,” Vance said. Vance also said Iran had agreed to invite IAEA inspectors back into the country.“It is a major milestone and the first step in permanently denuclearising Iran,” he said.The talks are aimed at addressing longstanding disputes between the two countries, particularly concerns surrounding Iran’s nuclear programme.However, Iranian foreign ministry spokesman Esmaeil Baqaei said discussions on the nuclear issue remain at an early stage.“A very brief discussion took place regarding the nuclear issue, but there was no discussion of details and nuclear talks had not begun,” Baqaei said.Iran had previously reduced cooperation with the IAEA and restricted access to some nuclear facilities following the 12-day conflict involving Iran, Israel and the United States in 2025.Although some inspections continued, access to key sites remained limited.
Sanctions relief and frozen assets
As part of the broader framework being negotiated, Iran is expected to receive some sanctions relief and potentially gain access to frozen assets held abroad.Vance stressed that no assets had yet been unfrozen but said any future release of funds would come with restrictions.“If Iranian assets are ever unfrozen, they’re going to go to make American farmers richer and to feed the Iranian people,” he said.Calling it ‘a classic Trump deal’, Vance argued that any released funds would be directed towards the purchase of US goods rather than activities linked to terrorism.The easing of restrictions on Iranian oil exports is being closely watched by global energy markets.Analysts say that the temporary sanctions relief could increase crude supplies and help stabilise energy markets, particularly if negotiations continue to progress and shipping through the Strait of Hormuz remains uninterrupted.
Background: US sanctions on Iran’s oil network
The sanctions were imposed by the United States as part of the Trump administration’s broader ‘Economic Fury’ campaign aimed at restricting Iran’s oil exports and limiting revenue that Washington says is used to fund the country’s military and security apparatus.During the conflict, the US Treasury Department repeatedly targeted Iran’s oil export network, including its so-called “dark fleet” of tankers accused of transporting Iranian crude through covert routes and deceptive shipping practices. According to US officials, some vessels switched off tracking systems or used complex ownership structures to bypass existing sanctions.The sanctions campaign was also linked to tensions surrounding the Strait of Hormuz, a critical global energy chokepoint through which nearly one-fifth of the world’s oil and liquefied natural gas supplies pass. The US warned that any disruption to shipping or restrictions on navigation in the waterway could trigger further punitive measures.However, following recent negotiations between Washington and Tehran, the US has now granted a temporary 60-day waiver allowing the production, sale and delivery of Iranian oil. The move came after Iran agreed to permit the return of International Atomic Energy Agency (IAEA) inspectors and committed to maintaining free and open transit through the Strait of Hormuz.The temporary sanctions relief is being viewed as a confidence-building measure as both sides continue discussions aimed at reaching a broader agreement on Iran’s nuclear programme and regional security issues.
