The United States has temporarily eased key sanctions on Iran’s energy sector by issuing a general license that authorizes the production, sale, transportation and delivery of Iranian-origin crude oil, petroleum products and petrochemicals until August 21.

The authorization, issued by the US Treasury Department’s Office of Foreign Assets Control (OFAC), also permits related financial transactions, shipping, insurance and other services required to facilitate the trade of Iranian energy products during the two-month period.

The decision marks the first time since 2018 that Iranian oil can be officially traded on global markets under US authorization. Washington reimposed sweeping sanctions on Iran’s energy sector in November 2018 after withdrawing from the 2015 nuclear agreement, effectively cutting the country off from most international oil buyers.

Although Iran continued exporting crude to a limited number of countries—primarily China—through alternative channels, the new license restores legal access to broader international markets for the first time in nearly eight years.

US officials said the temporary sanctions relief is part of a wider diplomatic understanding with Tehran aimed at reducing regional tensions and advancing negotiations over Iran’s nuclear programme. Under the framework, Iran has agreed to cooperate with international nuclear inspectors and maintain freedom of navigation through the Strait of Hormuz, a vital route for global oil shipments.

The announcement also weighed on oil prices, with traders anticipating additional Iranian crude supplies entering the market in the coming weeks.

The general license is scheduled to remain in effect until August 21 while Washington and Tehran continue negotiations on a longer-term agreement.