US suspends oil sanctions on Iran for 60 days amid peace talks
The US has lifted oil sanctions on Iran for 60 days while Washington and Tehran continue to hammer out a peace deal.
General License X (GL X), announced by the US Treasury Department’s Office of Foreign Asset Control (OFAC) on June 22, authorizes Iran to produce, deliver and sell crude oil, petroleum products, and petrochemicals until August 21. It comes days after Tehran and Washington signed a memorandum of understanding (MOU) in Switzerland for negotiating the plan's details.
“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 posted on X. “As part of the framework, Treasury has issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian oil.”
The new license permits Iranian oil imports into the US, but it continues to block transactions involving North Korea, Cuba, and Russia-occupied areas of Ukraine, including Crimea.
GL X also allows Iran to conduct oil deals in US dollars.
ClearView Energy Partners LLC described the new license as “somewhat more generous” than previous sanctions plans in 2013 and 2015. The previous sanctions capped Iran’s exports at around 1.1 million b/d, while the new “MOU does not appear to set an upper limit,” the consulting firm said in a June 22 client note.
About the Author
Cathy Landry
Washington Correspondent
Cathy Landry has worked over 20 years as a journalist, including 17 years as an energy reporter with Platts News Service (now S&P Global) in Washington and London.
She has served as a wire-service reporter, general news and sports reporter for local newspapers and a feature writer for association and company publications.
Cathy has deep public policy experience, having worked 15 years in Washington energy circles.
She earned a master’s degree in government from The Johns Hopkins University and studied newspaper journalism and psychology at Syracuse University.