US Lifts Sanctions on Iran Oil After Almost 8 Years, Anyone Can Buy

The United States has issued a temporary general license allowing the production, delivery and sale of Iranian-origin crude oil, petrochemical products and petroleum products through August 21, marking the biggest easing of US oil sanctions on Iran in almost 8 years.

“As of this moment, anyone can buy Iran oil. Neighbours should hurry,” a day-trader told ProPakistani.

The authorization was issued by the US Treasury Department’s Office of Foreign Assets Control (OFAC) and it also permits related financial, insurance, shipping and other commercial services needed for Iranian oil exports during the 60-day period.

The license allows transactions in US dollars and is part of an interim diplomatic framework which could be extended if a permanent end to the GUlf war is achieved.

The move effectively brings Iranian oil back into the formal global market for the first time since the United States reimposed sanctions in 2018 after withdrawing from the nuclear agreement with Iran. Since then, much of Iran’s crude exports had continued through unofficial channels, with China remaining its largest buyer.

The temporary sanctions relief is linked to ongoing negotiations aimed at reaching a broader agreement with Iran. As part of the framework, Tehran has committed to allowing international nuclear inspectors back into the country and ensuring the free flow of shipping through the Strait of Hormuz, one of the world’s most important oil transit routes.

The announcement immediately weighed on crude prices. Oil prices currently sit in the $70-74 range.

Before US sanctions were restored in 2018, Iran exported millions of barrels of oil per day to major customers including China, India, Japan, South Korea and several European countries.

The new license is set to remain in effect until 21st August while negotiations on a permanent agreement continue.