US authorises Iranian oil sales amid talks on final peace deal

WASHINGTON: The US treasury department authorised the production, delivery and sale of Iranian oil on Monday, a move promised under an agreement reached by Washington and Tehran last week.

The general license, announced as the two sides continue talks aimed at reaching a final peace deal, allows the production, delivery and sale of crude oil and petrochemical and petroleum products of Iranian-origin through Aug 21.

“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,” treasury secretary Scott Bessent said in a post on X.

“As part of the framework, Treasury has issued a temporary 60-day general license authorising the production, delivery, and sale of Iranian oil.”

Under the memorandum of understanding signed last week between Washington and Tehran, the US agreed to issue waivers for the export of Iranian crude oil, petroleum products, and derivatives, and all associated services, including banking transactions, insurances, and transportation.

Transactions authorised in Monday’s general license include importation of Iranian-origin crude oil, petrochemical and petroleum products to the US.

The license says Iranian oil can be imported into the US under the waiver when necessary to complete its sale or delivery.

It does not authorise transactions involving North Korea or Cuba, countries heavily sanctioned by the US.