U.S. Grants 60-Day Waiver on Iran Oil Sanctions, Allows Dollar Transactions

The United States on Monday (local time) granted a 60-day waiver on sanctions related to Iranian oil, which had been tightening the country's economy, for the duration of ongoing negotiations.

Treasury Secretary Scott Bessent announced on X (formerly Twitter) that day, "As part of productive talks in Switzerland, Iran has committed to free and open passage in the Strait of Hormuz and to accepting the return of International Atomic Energy Agency (IAEA) inspectors."

Consequently, Secretary Bessent stated, "The Treasury Department has issued a 60-day temporary general license allowing the production, delivery, and sale of Iranian crude oil."

This move serves as a "reciprocal measure" for Iran allowing IAEA inspections and maintaining the openness of the Strait of Hormuz during the first follow-up negotiations held in Switzerland after the previous Memorandum of Understanding (MOU), with the sanctions waived until a final agreement is reached.

Vice President JD Vance, who led the U.S. negotiating team, announced at a press conference following the talks that "Iran has agreed to invite IAEA inspectors back into the country," with their activities expected to begin sometime this week.

Vice President Vance also stated that the U.S. has established a "mechanism to keep the Strait of Hormuz open" and a "de-confliction mechanism" for the region, including Lebanon, with Iran.

Major foreign media outlets reported that the Treasury Department's sanctions waiver is effective until 12:01 a.m. on August 21, Eastern Time. During this period, Iran will be able to sell its crude oil products and receive payments in U.S. dollars.

It remains uncertain how much Iran will be able to immediately increase its oil exports due to this temporary sanctions waiver.

This is because exports were restricted by the U.S. naval blockade during the war, which may have led to saturated oil storage facilities and the closure of some oil wells.

Nevertheless, analysts suggest that Iran will gain significant economic benefits, as it can now officially sell oil at market prices instead of relying on "shadow fleets" to sell unofficially to countries like China at discounted prices due to sanctions.

When the U.S. Treasury Department previously allowed the sale of Iranian crude oil at sea in March as a measure to stabilize international oil prices, dollar-denominated transactions were not permitted. Now, with access to the dollar allowed, Iran's foreign currency supply shortage, which had triggered a sharp rise in exchange rates, may also be somewhat eased.

Miad Maleki, a former Treasury official who handled Iran sanctions, told The Wall Street Journal (WSJ) that this waiver has the effect of exempting financial institutions, including the Central Bank of Iran, from sanctions targeting not only nuclear-related activities but also terrorist activities.

Former official Maleki explained, "This represents a fundamental departure from the sanctions regime against Iran that the U.S. Congress has built over the past 20 years."

Daniel Tannebaum, a senior fellow at the Atlantic Council, pointed out to The New York Times (NYT) that this sanctions relief is premature compared to the Iran nuclear deal (JCPOA), which was signed during the Barack Obama administration and scrapped during Donald Trump's first term.

"It is worth noting that when the JCPOA was signed, sanctions relief was not provided immediately," Tannebaum said. "It took place on 'Implementation Day,' six months after the IAEA verified that nuclear-related obligations had been met."

The WSJ noted, "This could reignite concerns that Iran is receiving significant economic benefits before it has abandoned any part of its nuclear program."
※ Please note: This article was translated by AI and may contain errors.