The United States has announced that it is temporarily lifting sanctions on Iran, allowing Tehran to produce, sell and deliver crude oil and related products until August 21.
Treasury Secretary Scott Bessent cited Tehran's commitment in ongoing negotiations to "free and open transit" in the Strait of Hormuz and permission for International Atomic Energy Agency inspectors to enter their country as a reason for pausing the sanctions.
All transactions that were previously prohibited involving the production, sale, and transport of Iranian-origin crude oil "are authorised through 12:01 AM eastern daylight time, August 21, 2026," according to a license published by the Treasury Department on Monday.
"Tireless Pakistani and Qatari mediation has delivered major progress to end the Lebanon war," said Iran's Foreign Minister Abbas Araghchi.
"Oil and petrochem exports are waived, blockade lifted, some frozen assets released, and major reconstruction & development plan launched for Iran."
Near 1405 GMT, Brent oil futures were down 3.3 percent at $77.91 a barrel.
Sixty-day round of negotiations
Last week, Tehran and Washington signed a memorandum of understanding laying the groundwork for a 60-day round of negotiations, after nearly 40 days of fighting that was followed by weeks of an inconclusive and oft-breached ceasefire.
The first high-level direct meeting between US and Iranian officials concluded early on Monday at the Lake Lucerne Summit in Burgenstock, Switzerland.
The 100-minute first round of talks brought together the two countries’ chief negotiators, US Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf, under Qatari and Pakistani mediation.
Qatar and Pakistan said the discussions had taken place in a “positive and constructive atmosphere” and resulted in “encouraging progress” towards ending the war in Lebanon and easing pressure on Iran’s economy.
