As negotiations between the United States and Iran in Switzerland progress, the US has agreed to make some concessions regarding sanctions. According to a report by Reuters on June 22, the US Department of Treasury has temporarily lifted sanctions on Iranian oil exports. Iranian oil production, delivery, and sales are exempted from these sanctions. This means that, for the first time in decades, the US allows Iran to sell oil in US dollars.
On the 22nd, U.S. Treasury Secretary Bennet released a statement stating that, based on negotiations between the United States and Iran in Switzerland, Iran has promised to reopen the Strait of Hormuz and allow inspectors from the International Atomic Energy Agency (IAEA) to enter the country. As part of the negotiation framework, the U.S. Treasury Department has issued temporary licenses valid for 60 days, authorizing Iran to produce, deliver, and sell oil.
According to a notice from the Office of Foreign Asset Control under the U.S. Treasury Department, transactions related to the production, delivery, and sale of Iranian crude oil, petrochemicals, and petroleum products, which were previously prohibited by several U.S. executive orders and regulations, are now exempted until August 21, 2026. Iran can receive dollars for its oil transactions and sell its petroleum products to the United States.
After the Islamic Revolution in Iran in 1979, the U.S. government imposed a series of sanctions on Iran, and it hardly imported any Iranian oil again.
The Wall Street Journal notes that with the United States lifting decades-long strict restrictions, Iranian ships subject to sanctions can legally sell oil, and Iranian banks can directly receive payments from abroad. This is clearly good news for the Iranian government, which urgently needs foreign currency.
Former senior officials from the U.S. Treasury Department, Miahd Maliki, stated that this marks a “fundamental change” in the sanctions regime imposed by the United States against Iran over the past twenty years.
June 21st, Bierges Mountain in Switzerland, where the US-Iraq talks took place. IC photo
Iran Petroleum Exporters Association spokesman Hamid Hosseini told The Wall Street Journal that after the US introduced the exemption policy, European traders have contacted Iran, hoping to purchase Iranian crude oil. However, the Iranian side has not received any contact from US companies yet.
The United States and Iran held negotiations on Mount Eber in Switzerland from June 21 to 22 local time. Iranian Foreign Minister Ali Khamenei stated in a post on social media on June 22: "Exemptions were granted for the export of oil and petrochemical products, the blockade was lifted, some assets were deregulated, and a major plan for Iran's reconstruction and development has been launched."
American Vice President Wilson said that the United States and Iran have reached an agreement on a mechanism to keep the Strait of Hormuz open, in order to prevent this critical waterway from being blocked again. He also announced that progress has been made in unfreezing billions of dollars in Iranian funds held in Qatar. If these funds are finally unfrozen, they should be used to purchase American food products.
However, according to reports by Iran's Tasnim News Agency, Iran's Central Bank Governor Hamti stated that, based on the current memorandum of understanding, Iran has no obligation to purchase agricultural goods from the United States. He noted that the remaining frozen funds may not be used solely for purchasing necessities, but could also be used to purchase other goods that are not subject to sanctions.
Regarding the Iranian nuclear issue, Vance stated that Iran has agreed to invite inspectors from the International Atomic Energy Agency. This is a “major milestone” and also “the first step towards permanently ending Iran’s nuclear weapons program”.
The International Atomic Energy Agency has not commented on this news yet. Sources familiar with the matter revealed that the Director General of the agency, Yuki Mitsuhashi, attended negotiations in Switzerland. He hoped to persuade Iran to allow inspectors to return to the damaged nuclear facilities for inspections.
However, Iran’s Foreign Ministry spokesman Bagheri stated on the 22nd that the negotiations between Iran and the US in Switzerland did not cover nuclear issues, nor did they involve any new commitments. He emphasized that Iran’s cooperation and interaction with the International Atomic Energy Agency will continue according to the current mechanisms, and will be conducted in accordance with relevant laws of the Iranian parliament as well as the decisions made by the Supreme National Security Council.
