Trump deal gives Iran access to US dollar: What to know

Skip to content

The Trump administration this week signaled progress in its negotiations with Iran over reopening the Strait of Hormuz and reforming its nuclear program by rolling back longstanding sanctions on Iranian oil exports.

Under a 60-day license issued by the Treasury Department on Monday, Iran can now sell oil in U.S. dollars, allowing dollar-denominated trade on crude oil, petrochemical and petroleum products through Aug. 21.

The move is part of a broader ceasefire deal that will likely include the reopening of the critical shipping corridor, which Iran announced it would close again citing ceasefire violations tied to Israel launching deadly strikes in Lebanon. The strait’s closure has disrupted global oil supply and caused gasoline prices to surge.

The so-called “General License X” also permits Iranian oil imports into the United States and allows transactions from vessels and entities that were previously blocked by prior U.S. sanctions.

For decades, the U.S. used its oil sanctions on Iran to cripple its economy by cutting it off from the dollar-based financial system. Iran has since relied on a “shadow network” to continue exporting oil — primarily to China, which purchases roughly 90 percent of Iranian oil exports — and often relied on alternative currencies and other workarounds to avoid sanctions restrictions, according to The Wall Street Journal.

The waiver now allows Iranian banks to receive payments directly from buyers abroad, potentially unlocking billions of dollars in additional oil revenue for the country.

Treasury Secretary Scott Bessent said the move was tied to “productive talks” that occurred in Switzerland over the weekend to negotiate a U.S.-Iran peace deal to end the war.

“In line with the ongoing productive talks in Switzerland, Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency (IAEA) inspectors into their country,” Bessent wrote in a statement.

Mediating countries Pakistan and Qatar on Monday said the negotiations, which were the first face-to-face high-level meeting between the U.S. and Iran since the war began on Feb. 28, showed “encouraging progress” and that the technical talks will continue.

Vice President Vance said Monday that while Iran had agreed to allow inspectors to return to its sites, the terms of the negotiations are still under negotiation.

The U.S. and Tehran signed a preliminary agreement last week that opened a 60-day window to work toward a final deal. The sanctions relief was contemplated under the memorandum of understanding, adding to mounting concerns that Iran will be gaining significant financial relief before formally surrendering its nuclear capabilities.

In his first term, President Trump withdrew the U.S. from an Obama-era nuclear agreement and reimposed sanctions targeting Iranian oil experts and restricting its purchase of U.S. currency.

The administration argued at the time that the sanctions were necessary to pressure Tehran’s revenue that could be funneled into militant groups and other activities deemed threatening to national security.

While the temporary waiver does not permanently lift those sanctions, it marks one of the largest sanctions relief granted to Iran’s oil sector in decades.

Chief strategist at Geopolitical Strategy Michael Feller told CNBC that Iran will likely use the 60-day buffer to repair its oil facilities damaged by the war and secure long-term contracts with Chinese buyers.

“This will be a huge boost to Iran, both to its economy and its sense of victory,” he said.

Former Treasury official Miad Maleki also told CNBC that the move could unlock between $8 billion and $9 billion in revenue for Iran from barrels of crude that have been stuck in the Gulf.

“Production, sales, dollar payments, petrochemicals and protected shipping — all switched on at once,” Maleki told CNBC. “Together, they amount to a sustained reopening of Iran’s most important revenue stream.”

Administration officials say negotiations with Iran are continuing and that further agreements will depend on Tehran’s compliance with commitments made under the preliminary peace deal.

Tags

Donald Trump

Obama

Scott Bessent

Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.