U.S. Treasury Suspends Restrictions on Iranian Oil and Tankers for 60 Days
Indicating that there was positive movement in the negotiations between the United States and Iran, Treasury Secretary Scott Bessent announced on Monday a sweeping 60-day suspension of nearly all restrictions on Iran’s oil industry. It followed Iran’s quick resumption of oil exports after the U.S. last week ended its blockade for ships heading to Iranian ports and on tankers carrying Iranian oil.
Bessent said as part of the framework signed between Iran and the United States, “Treasury has issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian oil.” It is in effect until 12:01 a.m. Eastern Daylight Time on August 21.
The General License is extremely broad and represents a total reversal of the Trump administration’s campaign of maximum pressure that has been in effect. It covers the production, sale, delivery, and offloading of crude oil and petrochemical products. It also covers vessels currently listed as blocked by the United States and permits servicing of the vessels.
Included in the terms is authorization of transactions that import Iranian oil and products into the United States. Further, it states that payments can be made in U.S. dollar-denominated funds to Iran, its government, or individuals previously blocked.
Bessent said the moves were “in line with” productive talks in Switzerland. He said Iran has committed to free and open transit in the Strait of Hormuz. It is also reportedly agreeing to again permit International Atomic Energy Agency inspectors into Iran.
The official permission follows a rush by Iran to export oil after the end of the blockade. Analysts at the well-known tracking service TankerTrackers.com reported in the first five days, “Iran has exported nearly 18 million barrels (or $1.44 billion) of crude oil.” Today, it wrote in a social media posting that the exports have risen to 36 million barrels of crude oil. TankerTrackers.com estimates that “roughly an equal amount is still afloat in Iran.”
Critics point out the large amounts of money the United States is quickly releasing for Iran by permitting these transactions. It comes as Donald Trump is writing online that the Iranian economy was “broken” while inflation was at 250 percent.
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Despite Iran’s assertion over the weekend that it had again suspended transits of the Strait of Hormuz, U.S. Central Command asserted the southern lane near the coast of Oman is moving. On Saturday, it wrote, “Safe passage through the international waterway remained intact today as 55 merchant ships transited, moving large amounts of cargo and more than 17 million barrels of oil to global markets.” Volume, however, was reported to have slowed on Sunday.
As of June 14, CENTCOM said U.S. forces had redirected 142 commercial ships that complied with its orders and disabled nine vessels that did not comply. U.S. forces are reported to be closely monitoring vessel movements since the end of the blockade.