The United States announced on Monday the issuance of a 60-day general licence authorizing the production and sale of Iranian petroleum. This move represents a significant financial concession following recent diplomatic breakthroughs involving multiple parties.
The US Treasury Department explained that this temporary authorization stems from a framework established during intensive quadrilateral negotiations held in Burgenstock, Switzerland. The department confirmed that this action aligns with agreements reached during those talks.
This easing of restrictions on Iran’s energy sector coincides with a broader regional ceasefire and Tehran’s commitments to readmit international nuclear inspectors. US Treasury Secretary Scott Bessent emphasized that the decision is part of Washington’s wider strategy to stabilize global markets and reduce tensions in the Middle East. He reiterated the US leadership’s dedication to fostering global safety and prosperity through this 60-day licence permitting Iranian oil production, delivery, and sales.
Earlier, US Vice President JD Vance described discussions with Iranian officials in Switzerland as laying a “good foundation” for a final peace agreement, despite ongoing tensions over the Strait of Hormuz and Lebanon. The two sides, building on an interim deal signed the previous week, agreed on a roadmap to finalize a permanent agreement within 60 days during talks at the Qatari-owned Swiss mountain resort of Buergenstock, as announced by mediators from Pakistan and Qatar.
The parties also consented to a mechanism to end hostilities in Lebanon between Israel, a US ally, and Hezbollah. Additionally, they established a communication channel to ensure the safe passage of commercial vessels through the strategically vital Strait of Hormuz, a key global oil transit route. Vance noted that Tehran agreed to allow nuclear inspectors access and to implement mechanisms for managing its frozen assets abroad and overseeing ceasefires.
“We laid a very good foundation for a successful final deal,” Vance said after participating in the negotiations. Since the US bombing of Iran’s nuclear facilities in June last year, Iran has permitted inspections only of sites untouched by those strikes. The International Atomic Energy Agency (IAEA) halted inspections entirely following US-Israeli strikes that began the conflict with Iran on February 28, and inspections have not resumed since.
Vance downplayed recent tensions sparked by US President Donald Trump’s Sunday threat to restart the war after Iran again closed the Strait of Hormuz, citing Washington’s inability to halt fighting in Lebanon. “There was some threatening and complaining, but ultimately the talks continued and significant progress was achieved,” he stated.
Iranian Foreign Minister Abbas Araqchi announced on social media that Tehran secured waivers for oil and petrochemical exports, the release of some frozen assets abroad, and the initiation of a reconstruction and development plan for the country. Vance added that White House envoy Jared Kushner, Trump’s son-in-law, proposed a process under which the US and Qatar would oversee Iranian funds once unfrozen, ensuring the money would be used to purchase US agricultural products such as corn, soy, and wheat.
Following last week’s interim memorandum of understanding (MOU), the US Treasury Department issued a general licence allowing the production, delivery, and sale of crude oil, petrochemical, and petroleum products of Iranian origin through August 21.
Technical discussions are scheduled to continue throughout the week. Pakistani Prime Minister Shehbaz Sharif tweeted that the first round of talks had “concluded successfully,” describing the discussions as positive and constructive with encouraging progress.
Oil prices had surged sharply when Tehran initiated the blockade of the Strait of Hormuz, prompting a US blockade of Iranian ports. However, prices dropped to their lowest since the war began following the interim deal. After Monday’s joint statement by Qatar and Pakistan, concerns over supply shortages eased further, with Brent crude trading below $80 per barrel.
Before the talks officially began on Sunday, Trump warned Iranian officials via Fox News that they would lose their country if they attempted to close the strait again. Iran’s semi-official Tasnim news agency reported that after Trump’s threats surfaced, the Iranian delegation refused to re-enter the negotiation room, although communication continued through mediators.
The MOU calls for reopening the Strait of Hormuz and ending all hostilities, including the conflict in Lebanon, where violence persisted despite a ceasefire declared on Friday. Iran accused the US of failing to fulfill its commitment to halt fighting in Lebanon and announced it had again suspended maritime traffic through the strait. Nevertheless, ship tracking data showed two crude tankers carrying nearly 2 million barrels of oil passed through the strait on Monday, indicating that traffic is gradually resuming, though still far below the pre-war average of 125 daily crossings.
Violence in Lebanon has decreased since late Saturday, with security sources noting that Israel’s last airstrike occurred Saturday evening. Reflecting reduced tensions, the Israeli military lifted safety restrictions in eight communities near the Lebanese border starting Monday morning (0300 GMT).
Lebanese President Joseph Aoun engaged in a phone conversation with Vance, Qatar’s prime minister, and Kushner to discuss efforts to maintain the ceasefire and prevent Israeli military escalation. Israeli President Isaac Herzog stated that Israel does not oppose a diplomatic resolution to the Iran conflict but insists that any agreement must prevent Tehran from using received funds for military purposes or to support regional proxies.
