The United States has temporarily lifted selected sanctions on Iran, allowing Tehran to produce, sell, and transport crude oil and related petroleum products until August 21. The move comes as Washington and Tehran continue negotiations aimed at reaching a broader peace agreement following recent diplomatic progress.
US Treasury Secretary Scott Bessent said the temporary sanctions relief reflects Iran’s commitment during ongoing negotiations. He stated that Tehran agreed to ensure free and open transit through the Strait of Hormuz. Moreover, Iran has permitted inspectors from the International Atomic Energy Agency to re-enter the country, supporting efforts to increase transparency.
According to a general license issued by the US Treasury Department on Monday, transactions previously prohibited under sanctions involving the production, sale, and transportation of Iranian-origin crude oil are now authorised until 12:01 a.m. Eastern Daylight Time on August 21, 2026.
Meanwhile, Iranian Foreign Minister Abbas Araghchi welcomed the latest diplomatic developments. He said mediation efforts by Pakistan and Qatar had produced significant progress toward ending the conflict in Lebanon. He added that restrictions on Iran’s oil and petrochemical exports had been waived, the naval blockade had been lifted, some frozen Iranian assets had been released, and a major reconstruction and development programme had been launched.
Global oil markets reacted quickly to the announcement. Brent crude futures fell 3.3 percent to $77.91 per barrel as investors anticipated increased Iranian oil exports and reduced geopolitical risks.
Furthermore, the sanctions relief follows the signing of a memorandum of understanding between Tehran and Washington last week. The agreement established a roadmap for 60 days of negotiations after weeks of regional conflict and an unstable ceasefire.
The first direct high-level meeting between US and Iranian officials concluded on Monday in Burgenstock, Switzerland. Mediators from Pakistan and Qatar described the talks as constructive and said both sides made encouraging progress toward easing regional tensions and improving Iran’s economic outlook.
