US eases Iran oil sanctions, price on Brent crude drops over 3.5%

The United States has partially lifted sanctions on Iranian oil exports following what officials have described as encouraging progress in negotiations aimed at ending hostilities between Washington and Tehran.

According to Al Jazeera, the US Treasury on June 22 issued a 60-day sanctions waiver, allowing the production, delivery and sale of Iranian oil to the United States. The move follows positive assessments from mediators and senior US officials involved in talks held in Switzerland to secure a broader peace agreement.

Reuters reports that the licence means that Iranian oil can now be imported into the US as part of the completion of a sale, subsequent delivery or even offloading in what would be the first such relaxing of sanctions on Iranian oil since 1979.

The waiver was included as a condition of the 60-day memorandum of understanding signed by the two countries on June 17.

US Treasury Secretary Scott Bessent said negotiations had been productive and that several provisions of the agreement were already being implemented. He added that Iran had committed to ensuring free and open transit through the Strait of Hormuz and to allowing inspectors from the International Atomic Energy Agency (IAEA) into the country.

The temporary licence now remains in force until August 21 and covers Iranian crude oil, petrochemical products and petroleum products. The measure permits imports of Iranian oil into the US but excludes transactions involving entities including or linked to North Korea, Cuba or Russian-occupied areas of Ukraine that remain under US sanctions.

Iranian officials have not immediately commented on the announcement according to region media.

On the back of the announcement, oil prices extended recent declines with Brent crude falling over 3.5% to $77.70 a barrel.

The announcement came as US Vice-President JD Vance expressed optimism about discussions between US and Iranian officials at the Swiss resort town of Burgenstock.

Vance said the talks had established a strong basis for a final agreement and downplayed recent public exchanges between President Donald Trump and Iran’s lead negotiator, Mohammad Bagher Ghalibaf.

Vance did not provide a timetable for the start of nuclear inspections but said discussions with the IAEA could begin as early as the start of this week.