The United States has temporarily suspended sanctions on Iran’s oil sector, allowing the country to produce, sell and transport crude oil and related petroleum products until August 21, 2026.

The development was announced on Monday by the US Treasury Department, which issued a licence authorising transactions that were previously prohibited under US sanctions.

According to the department, the temporary waiver permits “all transactions” involving the production, sale and transportation of Iranian-origin crude oil and related products until 12:01 a.m. Eastern Daylight Time on August 21, 2026.

US Treasury Secretary Scott Bessent said the decision was influenced by Iran’s commitments during ongoing negotiations, including ensuring free and open navigation through the Strait of Hormuz and allowing International Atomic Energy Agency (IAEA) inspectors access to the country.

The temporary suspension comes as diplomatic efforts continue between Washington and Tehran to ease tensions and address key security and nuclear-related issues.