ISLAMABAD: The United States has partially lifted sanctions on Iranian oil exports, marking the first concrete economic step within a broader diplomatic framework aimed at ending regional hostilities and reshaping Tehran’s ties with global markets.

The US Treasury on Monday issued a 60-day waiver authorizing the production, delivery and sale of Iranian crude, petroleum products and petrochemicals under terms agreed during talks between Washington and Tehran. The license runs through Aug. 21.

US Treasury Secretary Scott Bessent said the decision reflected progress under the June 17 Islamabad Memorandum of Understanding and followed Iranian commitments on freedom of navigation through the Strait of Hormuz and cooperation with IAEA inspectors.

“As part of the framework, Treasury has issued a temporary 60-day general license authorising the production, delivery and sale of Iranian oil,” he said.

The sanctions waiver is among the memorandum’s most consequential economic measures.

Diplomats hope the move will help convert a fragile ceasefire into a broader political settlement.

Iran’s Foreign Minister Seyed Abbas Araghchi credited “tireless Pakistani and Qatari mediation” for the breakthrough and said the talks made major progress toward ending the conflict in Lebanon.

In a post on X after the Lake Lucerne Summit in Burgenstock, Araghchi listed several outcomes from the negotiations: sanctions relief on oil and petrochemical exports, the lifting of blockades, the partial release of frozen Iranian assets, and the launch of a major reconstruction and development initiative for Iran.

The joint Pakistan-Qatar statement, issued after the first high-level committee meeting involving the US and Iran, established a diplomatic channel to oversee implementation of the broader framework.

At the center of the economic package is energy: Iran holds some of the world’s largest proven oil reserves, but years of sanctions have sharply limited its export footprint, and the waiver is expected to widen Tehran’s access to international energy markets.

But the agreement extends beyond oil: the memorandum commits the US and regional partners to develop a definitive reconstruction and development plan for Iran worth at least $300 billion, with an implementation mechanism to be finalized within 60 days and the US agreeing to provide necessary licenses, waivers and permissions for related financial transactions.

Iranian officials have emphasized the domestic impact. Finance Minister Seyed Ali Madanizadeh told state news agency IRNA the deal would enable Iran to sell oil without restrictions and repatriate foreign-exchange earnings.

He said higher oil revenues would help narrow the budget deficit, bolster the currency and support non-oil exports and trade activity. He also highlighted the importance of frozen funds held abroad, describing them as central bank assets whose release would increase the supply of foreign currency to businesses and other economic actors.

Madanizadeh linked Iran’s recent economic strain to conflict, siege conditions and political tensions, arguing that falling government revenues had fueled inflationary pressure on households.

Washington has stressed safeguards over any released assets: US Vice President JD Vance said the framework aims to ensure that any unfrozen funds are used for economic development rather than activities Washington views as destabilizing.

“We wanted to make sure that we set up a process where if we ever unfreeze Iranian assets, we can ensure that Iranian money goes to help the people of Iran and not to fund terrorism,” Vance said in Lucerne.

The agreement’s potential economic effects are already drawing regional interest. Pakistan’s finance minister told Pakistan TV Digital that lifting oil sanctions could create substantial opportunities for bilateral trade and investment, reflecting wider expectations that gradual normalization could unlock new commercial corridors, energy cooperation and cross-border investment flows.

But implementation remains the decisive challenge. Araghchi pointed to the newly established Lebanon deconfliction cell as the first test of whether diplomatic commitments can be translated into durable political and economic results.

If the mechanism proves effective, the framework could mark the start of Iran’s most significant economic opening in years: restoring oil revenues, freeing frozen capital and laying the financial groundwork for a reconstruction effort potentially worth hundreds of billions of dollars.

Iran sanctions relief

Pakistan mediation yields economic breakthrough for Iran