The United States has temporarily lifted sanctions on Iran’s oil sector for 60 days, allowing the Islamic Republic to produce, sell and deliver crude oil and related products as Washington and Tehran press ahead with negotiations aimed at reaching a final peace agreement.

The US Treasury said in a statement on June 22 that “all transactions” previously prohibited involving the production, sale and transportation of Iranian-origin crude oil were authorised through August 21 under a temporary general licence.

The move fulfils commitments made under a memorandum of understanding signed last week between the two countries and comes after what US officials described as “productive talks” in Switzerland over the weekend.

Treasury Secretary Scott Bessent said the sanctions pause was linked to Tehran’s commitments during ongoing negotiations to maintain “free and open transit” through the Strait of Hormuz and allow inspectors from the International Atomic Energy Agency (IAEA) into the country.

“As part of the framework, Treasury has issued a temporary 60-day general licence authorising the production, delivery, and sale of Iranian oil,” Bessent wrote on X.

The authorisation also covers Iranian-origin petrochemical and petroleum products, as well as associated trade activities.

According to the licence, transactions include the import of Iranian crude oil, petroleum products, and petrochemicals into the United States, as necessary to complete their sale or delivery.

The development comes as Iran’s oil exports have rapidly accelerated following the easing of tensions between Washington and Tehran.

Sweden-based TankerTrackers.com said on June 22 that Iran had exported 36mn barrels of crude oil since June 15 and that roughly an equal volume remains afloat in Iranian waters awaiting shipment.

The US Navy lifted its blockade of Iranian ports and coastal areas on June 18, while Iranian supertankers have switched their transponders back on after going dark during the war and are departing the region loaded with crude.

The temporary sanctions relief stems from a 14-point memorandum signed last week between Washington and Tehran, under which the United States agreed to issue waivers for exports of Iranian crude oil, petroleum products and derivatives, alongside all associated services including banking transactions, insurance and transportation.

The agreement followed a 39-day war launched by the United States and Israel against Iran in late February and is designed to create a 60-day window for negotiations towards a permanent settlement.

Iran, for its part, committed to keeping the Strait of Hormuz open after having restricted shipping through the strategic waterway since early March.

The Strait of Hormuz, linking the Persian Gulf and the Gulf of Oman, carries around 20% of the world’s crude oil and liquefied natural gas supplies.

US Vice President JD Vance said earlier on June 22 that “great progress” had been achieved during the Swiss talks.

The latest measures also mark a significant shift for Iran’s energy industry, which has been subject to US sanctions since 2018 after President Donald Trump withdrew from the 2015 nuclear agreement and set out to drive Iran’s oil exports to zero, a goal that was never fully achieved.