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 it is 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. Bessent said Tehran committed to free and open transit through Hormuz.
The U.S. Navy on 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 region loaded with oil.
Iran typically loaded more than 1.5 milion barrels per day for export before the U.S. imposed its blockade in April. Most of Tehran's oil exports went to China. Its loadings declined to just 260,000 bpd in May as the blockade took hold.
Ship traffic through Hormuz rose sharply to 35 crossings Saturday before declining to 17 transits Sunday amid confusion over whether the strait was open or closed, according to data from Kpler. Ship traffic remains well 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 memorandum of understanding with the U.S. After that period, Tehran is supposed to discuss how the strait will be administered with Oman and the Gulf states, leaving open the possibility that tolls could be imposed at a later date.
