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U.S. issues sweeping Iran oil sanctions waivers, unlocking billions in revenue for Tehran
CNBC • • general
Key Points:
- The U.S. Treasury has issued a 60-day exemption allowing Iran to sell crude oil, petrochemical, and petroleum products in U.S. dollars, marking the most significant rollback of American oil sanctions on Iran since 1979.
- The exemption, under General License X, clears vessels and entities previously subject to sanctions, potentially unlocking around 67 million barrels of Iranian crude and generating $8 to $9 billion in revenue for Iran.
- This move follows positive progress in U.S.-Iran talks and a recent memorandum of understanding, with Iranian crude exports increasing to the highest level in two months amid renewed negotiations.
- The license enables direct dollar payments into Iran's central bank, reducing transaction costs and likely encouraging China, which buys 90% of Iran's oil, to accelerate purchases through authorized banking channels.
- Analysts expect Iran to use this period to repair oil infrastructure and secure longer-term contracts, boosting its economy and strengthening its position in ongoing diplomatic discussions.
