The US lifted the sanctions on Iranian oil for 60 days

According to a document from the Office of Foreign Assets Control, the US Treasury’s sanctions enforcement body, the US is already allowing a significant easing of sanctions on Iran: Iranian oil, which has been banned for sale, will now become a commodity that many more entities will be able to receive.

This was the American strategy at the beginning of the war, when sanctions were lifted from Iranian and Russian oil in order to reduce oil prices while the (short, so believe it) war was going on. But after the US failed to open the Strait of Hormuz that Iran had blocked, and it became clear that Iran’s oil profits were only increasing due to the high prices, the US changed direction, reinstated the sanctions and even imposed a naval blockade on Iran itself.

But now the wheel is turning again: as part of the negotiations with Iran, the US is already lowering the sanctions on Iranian oil, as mentioned until August 21.

The document, which was signed last night (Sunday) and has now been published, removes from the sanctions list products “necessary for the production, sale, transportation and unloading of crude oil, petrochemical products or oil products of Iranian origin, including the transfer of funds involving blocked ships”.

The price of oil has dropped dramatically since the signing of the memorandum of understanding between the US and Iran. As of today, a barrel of Brent oil costs $78, far below the highs recorded during the war, when oil exceeded $100 and even $110 per barrel. But this is still a higher price than the one registered on the eve of the war, and even more than at the beginning of the year, when the price of the same barrel of Brent was about $60.

As of today, although the memorandum of understanding is supposed to free the Strait of Hormuz, traffic in the Strait is still limited, and it will take time to resume – especially on the main route that is not adjacent to the coasts of Iran or Oman. This means that Iran is expected to enjoy a renewed ability to sell its oil, while the price is still higher than in the days when they were fixed.