WASHINGTON: The US Treasury said Monday it is temporarily lifting sanctions on Iran to allow the Islamic Republic to produce, sell and deliver crude oil and related products through August 21.
“All transactions” that were previously prohibited involving the production, sale, and transport of Iranian-origin crude oil “are authorised through 12:01 am eastern daylight time, August 21, 2026,” according to a license published by the Treasury Department, which administers US economic sanctions.
US Treasury Secretary Scott Bessent cited Tehran’s commitment in ongoing negotiations to “free and open transit” in the Strait of Hormuz and permission for International Atomic Energy Agency inspectors to enter their country as a reason for pausing the sanctions.
Under President @realDonaldTrump and @VP, we continue to make the world safer and more prosperous.
In line with the ongoing productive talks in Switzerland, Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency…
— Treasury Secretary Scott Bessent (@SecScottBessent) June 22, 2026
All transactions that were previously prohibited involving the production, sale, and transport of Iranian-origin crude oil “are authorised through 12:01 am eastern daylight time, August 21, 2026,” according to a license published by the Treasury Department.
“Tireless Pakistani and Qatari mediation has delivered major progress to end the Lebanon War,” said Iran’s Foreign Minister Abbas Araghchi.
“Oil and petrochemical exports are waived, blockade lifted, some frozen assets released, and a major reconstruction & development plan launched for Iran,” Araghchi said.
Near 1405 GMT, Brent oil futures were down 3.3 percent at $77.91 a barrel.
Last week, Tehran and Washington signed the Islamabad Memorandum of Understanding, laying the groundwork for a 60-day round of negotiations, after nearly 40 days of fighting that was followed by weeks of ceasefire.
US Vice President JD Vance said on Monday that Iran has agreed to allow inspectors from the International Atomic Energy Agency (IAEA) to return to its nuclear facilities following the first round of US–Iran talks held in Switzerland.
Vance described the discussions as “constructive,” saying they laid the groundwork for a potential final agreement aimed at reducing tensions and addressing concerns over Iran’s nuclear programme.
He said technical-level negotiations would continue in Switzerland after senior officials concluded the current round of talks.
According to a joint statement issued by mediators Pakistan and Qatar on Monday, the United States and Iran have agreed on a 60-day roadmap towards a final agreement following the conclusion of high-level talks in Switzerland mediated by Pakistan and Qatar.
The first session of negotiations under the framework of the Islamabad Memorandum of Understanding concluded at the Burgenstock resort overlooking Lake Lucerne, bringing together representatives of Iran, the United States, Pakistan and Qatar.
In a joint statement, the mediating countries described the Lake Lucerne Summit as having been conducted in a “positive and constructive atmosphere” and said “encouraging progress” had been achieved, including the establishment of a mechanism for further technical negotiations.
The parties agreed to establish a High-Level Committee to provide political oversight of the mediation process. Under the arrangement, chief negotiators will regularly report to the committee and lead specialised working groups focusing on nuclear issues, sanctions, monitoring mechanisms and dispute resolution.
According to the statement, the committee approved a roadmap aimed at reaching a final agreement within 60 days and laid the groundwork for the immediate start of technical discussions.
A direct communication channel has also been established between the parties to prevent misunderstandings and incidents during the implementation period outlined in the memorandum, particularly to ensure the safe passage of commercial vessels through the Strait of Hormuz.
The statement further announced the creation of a de-confliction cell involving the negotiating parties and the Lebanese Republic, facilitated by Pakistan and Qatar, to oversee compliance with the cessation of military operations in Lebanon agreed under the memorandum.
Technical talks are expected to continue throughout the week at the Burgenstock resort.
Pakistan and Qatar reaffirmed their commitment to supporting the negotiations and ensuring that discussions continue in a constructive atmosphere aimed at achieving a comprehensive and lasting agreement.
The two mediating countries also expressed appreciation to the United States and Iran for their commitment to diplomacy and peaceful conflict resolution, while thanking friendly countries for supporting the ongoing negotiations.
