U.S. issues sweeping Iran oil sanctions waivers, unlocking billions in revenue for Tehran
The U.S. has issued a sweeping rollback of sanctions on Iranian oil, allowing dollar-denominated trade for the first time in more than four decades ...
The U.S. Treasury on Monday issued a wide-ranging 60-day exemption allowing Iran to produce and sell crude oil, petrochemical and petroleum products in U.S. dollars through Aug. 21. ...
The move on Monday marks the most sweeping rollback of American oil sanctions against Iran since the 1979 Islamic Revolution, reversing years of pressure designed to cripple Iran’s economy, and is expected to deliver billions in oil revenue for the Iranian regime. ...
U.S. President Donald Trump defended the lifting of the sanctions, saying on Monday that any oil profits were meant for Iran to purchase American agricultural goods, rather than rebuild its military. ...
“With dollar clearing now authorized, expect China to accelerate purchases aggressively,” said Maleki. Chinese buyers, in the past, have settled transactions through opaque channels to avoid secondary U.S. sanctions exposure. ...
He expects a rapid storage “top-off cycle” under which Chinese buyers could rush to replenish stockpiles before the exemption expires in August.
China currently purchases roughly 90% of Iran’s oil exports, with teapots accounting for the bulk of China’s imports. The country’s crude imports shrank by an unprecedented 4.8 million barrels per day (mbd) between February and May — a steeper drop than the 4 mbd decline seen during the depths of the pandemic in the second half of 2020, according to JPMorgan. ...
Iran will likely use this 60-day window to repair war-damaged oil facilities and lock in longer-term contracts with Chinese buyers, said Michael Feller, chief strategist at Geopolitical Strategy. “This will be a huge boost to Iran, both to its economy and its sense of victory.”
