Oil prices had already begun to drop before Bessent’s announcement, in the wake of the talks.
The Treasury Department issued a general license for Iran on June 22, authorizing the production, delivery, and sale of crude oil, petrochemical, and petroleum products of Iranian origin through Aug. 21.
Treasury Secretary Scott Bessent announced the move in a post on X, saying that “as part of the framework” agreed in the Memorandum of Understanding (MOU) last week, the Treasury “has issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian oil.”
The waivers apply to the export of Iranian crude oil, petroleum products, and derivatives, as well as all associated services, including banking transactions, insurance, and transportation.
Transactions authorized under Monday’s general license include the importation of Iranian-origin crude oil, petrochemicals, and petroleum products into the United States, but do not permit transactions involving North Korea or Cuba.
The license further states that Iranian oil can be imported into the United States when necessary to complete its sale or delivery.
Tehran had earlier said it had secured waivers for oil and petrochemical exports, easing worries about a supply shortage in global oil markets.
Iranian Foreign Minister Abbas Araghchi said in a post on X on June 21 that “oil and petrochem exports are waived, blockade lifted, some frozen assets released, and major reconstruction & development plan launched for Iran.”
Oil prices had already begun to drop before Bessent’s announcement, in the wake of the talks.
Brent crude was trading at around $78.40 a barrel at 9:30 am GMT, after prices climbed to $81.75 per barrel at the start of trading.
U.S. West Texas Intermediate crude futures dropped to around $75.20 a barrel, down from a high of $81.67 shortly after markets opened.
Despite the drop, analysts at ING Think, a global financial and economic analysis platform backed by the bank of the same name, warned on June 22 that oil prices could again rise.
“Recent developments show that moving towards a more permanent deal will be challenging, with very real risks of a flare-up in hostilities during the 60-day ceasefire. For energy markets, the key factor is still whether oil and LNG flows from the Persian Gulf continue to recover, despite all the rhetoric,” the analysts said in a note.
The move by the Treasury came after Vice President JD Vance said earlier the same day that Iran had agreed to allow international nuclear inspectors back into the country, calling it a major breakthrough from the first round of U.S.–Iran talks in Switzerland and saying negotiators had laid “a very good foundation” for a final agreement to end the war.
By Guy Birchall
