Treasury Department authorizes Iranian oil sales through August
Treasury Secretary Scott Bessent said Monday that the United States has authorized Iranian oil sales through August after “productive talks” between Tehran and Washington in Switzerland over the weekend.
“As part of the framework, the Treasury issued a temporary 60-day general license allowing the production, delivery and sale of Iranian oil,” Bessent said. he said. Publish on X. authorization It will expire on August 21 unless renewed.
Vice President J.D. Vance said early Monday that “great progress” had been made in talks in Switzerland despite Iran announcing over the weekend that it was closing the Strait of Hormuz. US Central Command said Hormuz was not closed.
Vance said Iran has agreed to allow weapons inspectors from the International Atomic Energy Agency to return to the Islamic Republic. Bessent said Tehran is committed to free and open passage through Hormuz.
The US Navy lifted the blockade of Iran’s ports and coastal areas on Thursday. Iranian supertankers activated their transponders as they left the oil-laden region after dark during the war.
Iran typically loaded more than 1.5 million barrels of oil a day for export before the United States imposed the blockade in April. Most of Tehran’s oil exports went to China. With the blockade coming into force, loadings dropped to just 260,000 barrels per day in May.
Ship traffic in Hormuz decreased after Iran attacked ships during the war, triggering the largest oil supply disruption in history. Before the conflict, approximately 20% of the global crude oil supply was exported through the strait.
Traffic has increased since the United States and Iran signed a memorandum of understanding on June 17. Transits rose sharply to 35 on Saturday, then fell to 17 crossings on Sunday, amid confusion over whether the strait was open or closed due to threats from Iran, according to data from Kpler.
Traffic remains well below pre-war levels, with more than 100 ships passing through Hormuz each day.
In accordance with the agreement with the USA, Iran will allow ships to pass free of charge through Hormuz for 60 days. After this period, Tehran must discuss with Oman and Gulf countries how to manage the strait, leaving open the possibility of imposing a toll at a later date.
