– In a major shift in Middle Eastern energy and security dynamics, the US Department of the Treasury on Monday issued a temporary 60-day general license authorizing transactions related to the production, delivery, and sale of Iranian crude oil, petrochemicals, and petroleum products.The move follows a significant diplomatic breakthrough aimed at easing regional tensions and reopening the critical Strait of Hormuz.The newly issued general licence permits all operations related to the extraction, transport, and trade of Iranian-origin petroleum and petrochemical products.

According to official documentation, “all transactions” previously restricted under US sanctions regarding these activities are authorised until 12:01 a.m. Eastern Daylight Time on 21 August 2026.This development aligns with commitments to provide waivers for the export of Iranian oil and derivatives, alongside essential supporting services, including insurance, maritime transport, and financial processing.US Treasury Secretary Scott Bessent confirmed that the decision reflects the advancement of bilateral discussions currently underway in Switzerland.”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 stated in a post on X.He added, “As part of the framework, Treasury has issued a temporary 60-day general licence authorising the production, delivery, and sale of Iranian oil.”The authorization further extends to the importation of Iranian-origin crude and petroleum products into the United States, provided such transactions are required to conclude sales or deliveries under the new waiver terms.

The Treasury Department clarified that these exemptions do not extend to dealings involving North Korea or Cuba, which remain under strict US sanctions regimes.