US and Iran Sign Interim Deal to Lift Oil Sanctions

The United States government and Iran signed a 14-point memorandum of understanding in Bürgenstock, Switzerland, to end military hostilities and establish a roadmap for a final peace deal. As part of this interim agreement, the U.S. Treasury issued a 60-day general license effective through August 21, 2026, authorizing the production, delivery, and sale of Iranian crude oil, petroleum products, and petrochemicals in U.S. dollars. The U.S. also lifted its naval blockade of Iranian ports, leading to a record 19 million barrels of oil exiting the Strait of Hormuz on June 23.

Contradictions emerged regarding the deal's nuclear and financial terms. U.S. officials, including Vice President JD Vance, claim Iran agreed to readmit International Atomic Energy Agency inspectors. Iranian officials, including spokesman Esmaeil Baqaei, denied making new commitments on nuclear inspections. Additionally, President Donald Trump asserted that released frozen assets—estimated at $12 billion—would be held in U.S.-controlled escrow to purchase American agricultural products, a claim the Central Bank of Iran disputed, stating funds are designated for basic goods and medicine.

The agreement has triggered a decline in global oil prices, with Brent crude dropping toward $70 per barrel. While the National Iranian Oil Company has reached out to refiners in India, Japan, and South Korea, many Asian buyers remain cautious due to the short duration of the waiver. Analysts expect China to remain the primary buyer of Iranian crude. Meanwhile, a ceasefire between Israel and Hezbollah in Lebanon is largely holding, though Prime Minister Benjamin Netanyahu stated Israeli forces maintain freedom of action in southern Lebanon.