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

The United States on June 22 (local time) granted a waiver on oil-related sanctions that had been tightening the grip on Iran's economy, covering the duration of previous negotiations.

Treasury Secretary Scott Bessent announced on his X (formerly Twitter) account that day, "The Treasury Department has issued a 60-day temporary general license authorizing the production, delivery, and sale of Iranian oil."

Explaining the background of the sanctions relief, he stated, "As part of productive talks in Switzerland, Iran has committed to the free and open passage of the Strait of Hormuz and to accepting the reentry of International Atomic Energy Agency (IAEA) inspectors."

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 "mechanisms to keep the Strait of Hormuz open" and "de-confliction mechanisms" in the region, including in Lebanon, with Iran.

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

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

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

Nevertheless, analysts suggest that for Iran, which had been forced to sell oil unofficially to countries like China at discounted prices through a "shadow fleet" due to sanctions, the ability to sell officially at market prices will provide significant economic benefits.

When the U.S. Treasury allowed the sale of Iranian oil at sea last March as a measure to stabilize international oil prices, dollar-denominated transactions were not permitted. However, with access to the dollar now allowed, there is a possibility that Iran's foreign currency supply shortage, which had triggered a sharp rise in exchange rates, may be partially eased.

However, the U.S. has ensured that this waiver does not apply to individuals and entities in North Korea, Cuba, and regions of Ukraine that Russia claims to have occupied or annexed, including the Crimean Peninsula.

When the U.S. allowed the sale of Iranian oil for one month last March to curb rising oil prices, it also included exclusion clauses for North Korea and Cuba.

The Treasury's latest move, following the agreement between the U.S. and Iran, has sparked concerns within the United States.

Miad Maleki, who previously handled Iran sanctions at the Treasury Department, told the Wall Street Journal that this waiver has the effect of exempting financial institutions, including the Central Bank of Iran, from sanctions targeting not only nuclear activities but also terrorist activities.

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

The Wall Street Journal specifically noted that this "could reignite concerns that Iran is receiving significant economic benefits before abandoning any part of its nuclear program."

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.