US Suspends Iran Oil Sanctions for 60 Days Under Preliminary Deal

The US Treasury announced a 60-day suspension of sanctions on Iranian oil production and sales following a preliminary agreement reached in Switzerland, contingent on Iranian concessions regarding nuclear inspections and transit.

Terms of the 60-Day Sanctions Relief

On Monday, the US Treasury Department confirmed a temporary, 60-day suspension of sanctions covering the production, sale, and transport of Iranian crude oil. This measure is a direct result of initial negotiations held in Switzerland.

Treasury Secretary Scott Bessent stated that Iran has committed to maintaining open transit through the Strait of Hormuz and allowing International Atomic Energy Agency (IAEA) inspectors access to its facilities. The general license issued by the Treasury remains valid until August 21.

Scope and Limitations of the Agreement

The license permits the sale of Iranian oil, including to the United States, but explicitly maintains bans on exports to North Korea, Cuba, and occupied Ukraine. This temporary relief is a core component of the memorandum of understanding signed last week between Washington and Tehran.

Vice President J.D. Vance described the suspension as a “solid foundation” for a final deal, dismissing claims that it grants Iran significant leverage, noting that the country previously bypassed restrictions effectively. He argued that current sanctions had primarily benefited China, which secured Iranian oil at discounted prices.

Status of Frozen Assets

The fate of Iran’s frozen assets, estimated at over $100 billion, remains subject to conflicting reports. While Iranian Foreign Minister Abbas Araghchi claimed some funds were released, the White House and Vice President Vance have denied that Iran has received payments.

Vance clarified that should any assets be released in the future, they would be strictly earmarked for the purchase of American agricultural products as part of “confidence-building measures.”