The United States Treasury Department announced on Monday that Iran has been granted permission to produce, transport, and market its crude oil over the coming 60 days.

This approval permits American buyers to receive Iranian petroleum products through August 21, 2026, while dealings with North Korea, Cuba, and Russian-occupied Ukraine continue to face restrictions.

Treasury Secretary Scott Bessent stated on X that the decision aligns with productive discussions in Switzerland, where Iran agreed to ensure open passage through the Strait of Hormuz and to allow International Atomic Energy Agency inspectors full access. As part of this arrangement, a short-term general license was issued for Iranian oil activities.

Global markets reacted swiftly, with oil prices dropping sharply on Tuesday. Brent crude futures declined 44 cents, or 0.6 percent, reaching 77.46 dollars per barrel, while US West Texas Intermediate fell 30 cents, or 0.4 percent, to 73.56 dollars per barrel by 0813 GMT.

Government figures released on Monday revealed that US crude reserves in the Strategic Petroleum Reserve slipped to 331.2 million barrels last week, marking the lowest level since June 1983 amid tighter supplies caused by the three-month closure of the Strait of Hormuz.

1.5 million barrels of oil daily before Hormuz closure

Prior to the Hormuz blockade, Iran shipped more than 1.5 million barrels of oil each day, a volume that later fell to between 209,000 and 260,000 barrels. Maritime intelligence firm TankerTrackers reported that Iran has moved roughly 36 million barrels of crude since June 15.

The same firm noted on Friday that Iran earned 1.44 billion dollars from crude sales during that single week.

Shahar Golomb, an economics and finance lecturer at Afeka Academic College of Engineering, told The Jerusalem Post that it remains too soon to gauge the full effects of the two-month window, yet he warned of a genuine danger that the Iranian regime could divert some proceeds toward rebuilding or bolstering its military and regional influence.

He added that the US administration appears to have conducted a calculated cost-benefit analysis, concluding that a brief reprieve may prove less damaging than extending a conflict capable of disrupting energy markets, driving oil prices sharply upward, and posing wider threats to the global economy. In essence, this represents a pragmatic effort to limit immediate economic and geopolitical harm rather than an endorsement of Iran.

Reuters contributed to this report.