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

The decision was announced by the US Treasury Department on Monday through a special licence authorising transactions that had previously been restricted under US sanctions.

According to the Treasury, the waiver covers activities related to the production, sale and transportation of Iranian crude oil and petroleum products during the two-month period.

US Treasury Secretary Scott Bessent said the move was tied to commitments made by Iran during ongoing negotiations with Washington. He explained that Tehran had pledged to ensure free and open navigation through the Strait of Hormuz, a vital route for global oil shipments, and to grant inspectors from the International Atomic Energy Agency access to the country.

The temporary suspension is expected to support diplomatic efforts between both countries while helping to stabilise international energy markets.

Analysts say the move could increase the volume of Iranian crude available on the global market, potentially easing supply concerns and influencing oil prices in the coming weeks.

The waiver will remain in effect until 12:01 a.m. Eastern Daylight Time on August 21, 2026, unless the US government decides to extend, modify or terminate the arrangement.

The United States has maintained a range of sanctions on Iran over concerns related to its nuclear programme and regional activities. However, both countries have recently engaged in talks aimed at reducing tensions and finding common ground on key issues.