US suspends sanctions on Iranian oil until August 21

The United States has temporarily suspended sanctions on Iranian oil exports until August 21, 2026, in a significant diplomatic move aimed at advancing ongoing negotiations with Tehran and easing tensions in the Middle East.

The decision was announced by the U.S. Treasury Department on Monday through a 60-day general licence authorising the production, delivery and sale of Iranian crude oil, petroleum products and petrochemicals.

The measure comes as Washington and Tehran continue talks in Switzerland on a comprehensive agreement to end months of conflict and restore regional stability.

According to U.S. officials, the temporary sanctions relief was granted after Iran committed to allowing free passage of commercial vessels through the Strait of Hormuz and permitting inspectors from the International Atomic Energy Agency, IAEA, to resume access to its nuclear facilities.

The Strait of Hormuz is one of the world’s most critical energy routes, through which a significant share of global oil shipments passes. Concerns over disruptions to maritime traffic in the waterway have contributed to volatility in international energy markets in recent months.

The sanctions waiver allows transactions involving Iranian oil exports, including associated banking, insurance and transportation services, during the 60-day period. However, U.S. authorities said the licence does not extend to transactions involving North Korea or Cuba.

The move marks a notable shift from Washington’s longstanding sanctions policy towards Iran and is seen as part of a broader effort to create conditions for a permanent agreement between the two countries. U.S. Vice President JD Vance said recent negotiations had laid “a very good foundation” for a final deal.

The temporary relief follows a memorandum of understanding reached earlier this month that established a 60-day framework for negotiations on issues including nuclear oversight, maritime security and sanctions relief.

Under the arrangement, both sides are expected to work towards a comprehensive agreement that could reshape relations between Washington and Tehran.

Energy analysts say the suspension of sanctions could boost Iranian oil exports and increase global crude supply, potentially easing pressure on oil prices at a time of uncertainty in international markets.

The sanctions waiver is scheduled to expire on August 21 unless extended or replaced by a broader agreement emerging from the ongoing negotiations.