U.S. Treasury issues 60-day license for Iran to sell oil

The U.S. Treasury Department on Monday issued a 60-day license allowing Iran to export and sell its oil, fulfilling one of the provisions in the memorandum of understanding signed between Washington and Tehran.

Treasury Secretary Scott Bessent wrote on social media that the license was issued following Iran’s commitment to reopen the Strait of Hormuz and allow International Atomic Energy Agency inspectors back into the country.

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

The license fulfills a major demand of Iran prior to negotiations and provides Tehran with a pathway to make billions through the oil trade.

Traditionally, Iran’s oil has been under heavy Western sanctions, greatly diminishing the country’s potential customers and forcing Tehran to offer steep discounts. China purchases around 90% of Iran’s oil and transports it through a network of shadow tankers, according to the Treasury Department.

The U.S.-Iran memorandum of understanding signed last week indicates the Treasury Department must “issue waivers for the export of Iranian crude oil” until a final agreement is reached.

The news comes just hours after Iranian and U.S. diplomats met for the first round of peace negotiations in Switzerland. The two sides reportedly agreed to create  “executive mechanisms” to ensure the provisions of the memorandum are implemented.

However, extensive, detailed talks over Iran’s nuclear program and the potential removal of U.S. economic sanctions are still to come later this week.