U.S. Treasury Grants Iran 60-Day Loophole to Sell Oil in Dollars, Risking Billions for Tehran
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The U.S. Treasury has issued a 60-day general license that allows Iran to produce, sell, and receive payment for oil in U.S. dollars, a controversial move likely to funnel billions into the coffers of the Iranian regime. Critics warn this could embolden Tehran’s hostile activities and undermine American leverage.
Washington issued a 60-day general license on Monday, temporarily lifting sanctions on Iranian crude, petrochemical, and petroleum product transactions in U.S. dollars, effective through August 21. This exemption, known as General License X, clears vessels and entities previously barred by U.S. sanctions and could reopen the market for U.S. imports of Iranian oil, which have been virtually nonexistent since the 1990s, according to the U.S. Energy Information Administration.
Analysts estimate the waiver could free up about 67 million barrels of Iranian crude stranded in the Gulf, potentially delivering $8-9 billion in revenue directly to the Iranian regime. “Production, sales, dollar payments, petrochemicals and protected shipping — all switched on at once,” said Miad Maleki, a former Treasury sanctions official now with the Foundation for Defense of Democracies.
President Donald Trump defended the decision, insisting that any oil earnings should be used by Iran to purchase American agricultural products and not to fund its military or destabilizing activities. The waiver follows a memorandum of understanding signed last week and talks in Switzerland, which the administration claims are aimed at a broader peace agreement, though many remain skeptical of Iran’s intentions.
Recent maritime data show Iranian exports rose to 6.79 million barrels last week, the highest in two months. With dollar clearing authorized, analysts expect Chinese buyers, who already account for roughly 90% of Iran’s oil sales, to ramp up purchases before the exemption expires. The license also allows Iran to receive proceeds directly into its central bank, reducing the effectiveness of previous sanctions designed to limit Tehran’s access to hard currency.
Some market participants note that buyers will need time to complete compliance reviews, but anticipate heightened interest if pricing and cargo availability are favorable. Iran is expected to use this window to repair war-damaged facilities and secure longer-term contracts, a development that critics argue could strengthen a regime notorious for its support of terrorism and hostility toward the West.
