US Issues Temporary Sanctions Waiver for Iran's Oil Sector

The US has issued a temporary sanctions waiver for Iran’s oil sector, authorizing the production, sale, delivery, and import of Iranian crude oil and petrochemicals, the Treasury Department has said. The announcement comes as negotiations between Washington and Tehran continue following the first round of talks in Switzerland over the weekend.

Iran General License X authorizes “the production, delivery and sale of crude oil, petrochemical products, and petroleum products of Iranian origin” for a 60-day period, Treasury Secretary Scott Bessent said on X on Monday.

The license also covers services linked to the energy trade, including vessel management, insurance, crewing, bunkering, classification, and emergency repairs. Buyers are permitted to make payments in US dollar-denominated funds to Iran, the Iranian government, or sanctioned Iranian entities for transactions covered by the license.

Unlike General License U, issued in March 2026 and limited to oil already loaded onto tankers before a set cutoff date, the new license also allows production activities.

The license also authorizes the importation into the US of Iranian-origin crude oil, petroleum products, and petrochemical products, temporarily suspending restrictions that normally bar these imports.

The authorization comes as part of a memorandum of understanding reached between the US and Iran earlier this month, in which Washington pledged to immediately issue waivers on Iranian oil exports.

This weekend, Washington and Tehran agreed on a roadmap toward a final agreement following negotiations mediated by Qatar and Pakistan at the Swiss resort of Buergenstock. No joint statement has been released, but the mediators said the talks produced agreement on a 60-day roadmap toward a final deal, further technical negotiations, and the creation of a high-level committee to oversee the process. Tehran said the talks focused heavily on practical economic measures, including the release of frozen assets, and the lifting of restrictions on Iranian ports and shipping.

Iran holds some of the world’s largest hydrocarbon reserves and ranks among the top countries globally in both crude oil and natural gas. Its energy sector has been constrained for years by US sanctions, which restricted access to shipping services, insurance, international banking channels, and potential buyers.

Despite the sanctions, Iran continued exporting crude oil, with China remaining its largest customer. Much of the exports were reportedly purchased by independent Chinese refiners that bought Iranian oil despite the risk of US penalties.