The U.S. on Monday authorized Iranian oil sales through August after “productive talks” between Tehran and Washington in Switzerland over the weekend, Treasury Secretary Scott Bessent said.
“As part of the framework, Treasury has issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian oil,” Bessent said in a post on X. The authorization expires August 21, unless its renewed.
Vice President JD Vance said earlier Monday that “great progress” was made during the talks in Switzerland, despite Iran’s declaration over the weekend that it had closed the Strait of Hormuz. U.S. Central Command said Hormuz had not been closed.
Vance said Iran agreed to allow weapons inspectors from the International Atomic Energy Agency back into the Islamic Republic, while Bessent said Tehran had also committed to free and open transit through Hormuz.
The U.S. Navy last Thursday lifted its blockade of Iran’s ports and coastal areas. Iranian supertankers have switched on their transponders, after going dark during the war, as they depart the Persian Gulf loaded with oil.
Iran typically loaded more than 1.5 million barrels per day (bpd) for export before the U.S. imposed its blockade in April, with most of that oil going to China. Loadings declined to just 260,000 bpd in May as the blockade took hold.
Ship traffic through Hormuz plunged during the war as Iran attacked vessels, triggering the largest oil supply disruption in history. About 20% of global crude supplies were exported through the strait before the war.
Traffic has since increased after the U.S. and Iran signed a memorandum of understanding on June 17. Transits rose sharply to 35 on Saturday before declining to 17 crossings on Sunday amid confusion over whether the strait was open or closed due to Iran’s threats, according to data from Kpler.
Traffic remains far below prewar levels, when more than 100 vessels transited Hormuz daily.
Iran must allow ships to transit Hormuz toll free for 60 days under the agreement with the U.S. After that, Tehran is supposed to discuss with Oman and the Gulf states how the strait will be administered, leaving open the possibility that tolls could be imposed later.
