US Allows Iran to Sell Oil for 60 Days Amid Talks on Final Peace Deal -

The US Treasury said Monday it is temporarily lifting sanctions on Iran to allow the Islamic Republic to produce, sell and deliver crude oil and related products through August 21.

“All transactions” that were previously prohibited involving the production, sale, and transport of Iranian-origin crude oil “are authorized through 12:01 am eastern daylight time, August 21, 2026,” according to a license published by the Treasury Department, which administers US economic sanctions.

US Treasury Secretary Scott Bessent cited Tehran’s commitment in ongoing negotiations to “free and open transit” in the Strait of Hormuz and permission for International Atomic Energy Agency inspectors to enter their country as a reason for pausing the sanctions.

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Vice President JD Vance said Monday that Iran would allow nuclear inspectors to return to the country after what he called a “very, very good” first day of U.S.-Iran negotiations in Switzerland. Iran’s foreign ministry, however, said earlier that real negotiations on the “nuclear issue” haven’t yet started.

READ ALSO: Iran Accuses US Of Breaking Truce After New Strikes

Mediators said the two sides agreed to establish a line of communication to avoid “incidents and miscommunication” in the Strait of Hormuz to help ensure safe transit for commercial vessels through the vital waterway.

Iran, the U.S. and Lebanon have also agreed to create a “deconfliction cell” to ensure the U.S.-Iran agreement’s call for a ceasefire on all fronts, including in Lebanon, is respected. Iran’s foreign minister says it will be the first real test of the negotiations.

U.S. stocks mostly rise amid reports of progress in U.S.-Iran talks
Wall Street stocks mostly rose early Monday, greeting upbeat comments from Vice President J.D. Vance about peace talks after tension between the U.S. and Iran rose again over the weekend.

Vance said “a very good foundation” had been established for a final accord with Iran after a marathon day of negotiations in Switzerland. Iranian officials also described the talks as constructive.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.4 percent at 51,775.51. The broad-based S&P 500 added 0.1 percent at 7,509.47, while the tech-rich Nasdaq Composite Index fell 0.3 percent to 26,446.41.

Oil prices pulled back as traffic picked up in the Strait of Hormuz, which started reopening last week after Iran and the U.S. unveiled agreement on a memorandum of understanding.

Tehran then announced Saturday that it had closed the strategic waterway again in response to ongoing Israeli attacks in Lebanon. In the Sunday talks, however, Tehran and Washington agreed on mechanism aimed at ensuring peace in Lebanon and bolstering security in the strait, through which a fifth of the world’s oil would typically pass before the war.

The market is “taking it very well,” Adam Sarhan of 50 Park Investments said of the latest back-and-forth. “The markets believe that we’re moving closer to a deal with every day that passes.”