US issues 60-day license for Iranian oil sales, explores Iranian frozen assets for US farm products
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US Vice President JD Vance speaks to members of the media after the US and Iran held high-level talks aimed at advancing a deal to end the Middle East conflict at the Lake Lucerne Summit, at the Burgenstock luxury hotel complex overlooking Lake Lucerne, Switzerland, on June 22, 2026. Photograph: (AFP)
The US has authorised Iranian oil production and sales for 60 days following progress in Switzerland talks. Iran will reopen the Strait of Hormuz and permit IAEA inspections, while Washington considers using frozen Iranian assets to purchase US agricultural products
The US Treasury Department on Monday issued a general license authorising the sale of production, delivery and sale of Iranian oil. The authorisation follows a negotiation which was described by US Vice President JD Vance as “a lot of good progress”, and a “very good foundation”. The license is likely to expire on August 21, unless renewed. It was part of a move promised under the Memorandum of Understanding reached by Washington and Iran last week. In exchange, Iran will open the Strait of Hormuz and allow IAEA nuclear inspectors to verify Iran's compliance with the preliminary agreement.
"In line with the ongoing productive talks in Switzerland, Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency (IAEA) inspectors into their country," Treasury Secretary Scott Bessent said in a post on X. However, the license does not authorise the sale of oil to Cuba, North Korea and the Crimea region of Ukraine.
"As part of the framework, Treasury has issued a temporary 60-day general license authorising the production, delivery, and sale of Iranian oil," read the post. The US had already lifted the blockade of Iran’s ports and coastal areas last Thursday. According to trade intelligence firm Kpler, ship traffic through Hormuz rose sharply to 35 crossings on Saturday before declining to 17 over confusion about whether the Strait is open or closed.
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Vance suggests Iran should buy US products with frozen assets
US Vice President JD Vance confirmed that Washington is exploring a proposal to unfreeze certain Iranian assets under a strictly managed framework, where the Iranian funds will be used to purchase US agri products, such as including corn, soy, and wheat. The proposal argues for an indirect transfer of funds instead of a direct liquid transfer, rationalising the prevention of use of the funds for weapons purchase. Vance said that Kushner and Qatari officials came up with the suggestion. The Qataris and the US will jointly approve the process. Vance highlighted that the deal serves two purposes: ensuring that "money goes to help the people of Iran" while simultaneously making “American farmers richer”.
