Treasury Secretary Scott Bessent said on Monday that the United States had approved Iranian oil sales through August, following “productive talks” between Iran and Washington in Switzerland over the weekend.
“As part of the framework, the Treasury Department has issued a 60-day temporary general permit allowing the production, delivery, and sale of Iranian crude oil,” Bessent said in a post on X. The permit expires on August 21st unless renewed.
Vice President J.D. Vance said early Monday that “significant progress” had been made in talks in Switzerland, despite Iran declaring it had closed the Strait of Hormuz over the weekend. U.S. Central Command said Hormuz is not closed.
Vance said Iran had agreed to allow International Atomic Energy Agency weapons inspectors to return to the Islamic Republic. Bessent said the Iranian government is committed to free and open transit through Hormuz.
The US Navy lifted the blockade of Iranian ports and coastal areas on Thursday. The Iranian supertanker switched on its transponder as it left the region with a cargo of oil after going dark during the war.
Before the U.S. imposed a blockade in April, Iran typically loaded more than 1.5 million barrels a day for export. Most of Tehran’s oil exports went to China. As the blockade took hold, shipments fell to just 260,000 barrels per day in May.
Ship traffic through Hormuz surged to 35 crossings on Saturday, but fell to 17 crossings on Sunday amid confusion over whether the strait was open or closed, according to Kpler data. Shipping traffic remains well below pre-war levels, when more than 100 ships passed through Hormuz every day.
Under a memorandum of understanding with the United States, Iran must allow ships to pass through Hormuz free of charge for 60 days, after which Tehran will discuss how to manage the strait with Oman and Gulf states, leaving open the possibility that tolls may be imposed at a later date.
