US waives sanctions on Iranian oil for 60 days
Brent crude’s price has moved lower after the US Department of Treasury (DoT) waived some sanctions on Iranian-origin crude oil and petrochemical products, through 21 August.
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The temporary 60-day general license will authorise the production, delivery and sale of Iranian crude and petrochemical products to global markets, the treasury department said.
The waiver was issued after Iran “committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency (IAEA) inspectors into their country,” according to US treasury secretary Scott Bessent.
Washington has temporarily waived these decades-old sanctions after a successful first round of talk in Switzerland yesterday. However, the oil sale must be made by US dollar-denominated funds, the DoT added.
The license allows Iranian oil to be imported into the US to complete its sale, delivery or offloading. Notably, the US has not imported Iranian oil since it imposed sanctions on Tehran after the 1979 Islamic revolution.
The waiver excludes transactions involving Crimea, Cuba and North Korea, the US treasury department said.
China has remained one of the major buyers of sanctioned Iranian oil, capitalising on discounts while other buyers shied away. India, South Korea, Japan, Italy, Greece, Taiwan and Turkey are among other buyers of Iranian crude before Washington reimposed sanctions in 2018, Reuters reported.
By Aparupa Mazumder
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