US grants Iran 60-day oil sanctions waiver for IAEA inspections, Hormuz access

The United States granted a temporary easing of sanctions on Iran's oil industry Monday, citing progress in negotiations toward ending the war.

Treasury Secretary Scott Bessent said on X that "as part of productive talks held in Switzerland, Iran has committed to guaranteeing free and open passage through the Strait of Hormuz and to accepting the return of International Atomic Energy Agency inspectors."

Bessent added that the Treasury Department had issued a 60-day temporary general license authorizing the production, delivery and sale of Iranian crude oil.

The move responds to Iran's agreement, reached at the first follow-up talks since the signing of a ceasefire memorandum of understanding, to accept IAEA inspections and maintain open passage through the Strait of Hormuz. It signals Washington's willingness to partially suspend sanctions ahead of a final deal.

Vice President JD Vance, who led the US negotiating team, told reporters immediately after the talks that Iran had agreed to allow IAEA inspectors to return. He said their work was expected to begin this week.

He also said the two sides had established a mechanism to keep the Strait of Hormuz open and built a framework to prevent regional conflicts, including in Lebanon.

The Treasury waiver runs until 12:01 a.m. Eastern time on Aug. 21, during which Iran will be permitted to sell its crude oil products and receive payment in US dollars, according to major international news agencies.

How much Iran can immediately boost oil exports under the temporary waiver remains uncertain. During the war, US naval blockades constrained exports, likely causing storage facilities to reach capacity and forcing the shutdown of some oil wells.

Even so, analysts say Iran stands to gain considerably. Previously forced by sanctions to sell oil informally through a "shadow fleet" at discounted prices to China and others, Tehran can now sell at market prices through official channels.

When the Treasury Department permitted sales of Iranian crude at sea in March to stabilize global oil prices, dollar-denominated payments were not allowed. The new access to dollar transactions could also ease Iran's foreign currency shortage, which had driven sharp swings in the exchange rate.

However, the US specified that the waiver does not apply to individuals and entities in North Korea, Cuba, or Russian-occupied or annexed Ukrainian territories, including Crimea.

The Treasury Department's Office of Foreign Assets Control made that explicit in a notice issued that day.

The exclusion is intended to prevent North Korea, Cuba and others from purchasing Iranian crude and benefiting from the sanctions relief.

A similar carve-out for North Korea and Cuba was included when the US allowed Iranian oil sales for one month in March to curb rising oil prices.

The Treasury's move has also drawn concern within the United States.

Miad Maleki, a former Treasury official who handled Iran sanctions, told The Wall Street Journal that the waiver effectively shields Iranian financial institutions — including the central bank — from sanctions targeting not only nuclear activities but also terrorism.

"This represents a fundamental departure from the Iran sanctions architecture that Congress has built over the past 20 years," Maleki said.

Daniel Tannenbaum, a senior fellow at the Atlantic Council, told The New York Times that the sanctions relief appeared hasty compared with the Iran nuclear deal — known as the JCPOA — concluded under the Barack Obama administration and later abandoned by Donald Trump during his first term.

"It's worth noting that when the JCPOA was concluded, sanctions relief was not provided immediately," Tannenbaum said. "It came on 'Implementation Day,' six months after the IAEA verified that Iran had fulfilled its nuclear-related obligations."

The Wall Street Journal said the move "could revive concerns that Iran is receiving significant economic benefits before giving up any part of its nuclear program."