U.S. to Let Iran Resume Oil Sales Immediately Under Truce Deal

The United States will allow Iran to begin selling oil and fuel immediately as part of the agreement to end the war, giving Tehran an early financial incentive to help calm the conflict. According to sources cited by The Wall Street Journal, the sanctions waiver on oil sales will take effect as soon as the deal is signed this week and will also cover related services such as banking, transport and insurance needed to facilitate the exports.

The move appears to have already had an effect. The group United Against Nuclear Iran said a giant Iranian tanker carrying crude left the port of Chabahar, crossed the U.S. blockade and sailed on Tuesday from the Gulf of Oman with its tracking device active, the first such case since the U.S. blockade began in April.

A senior U.S. official said Iran is getting advance relief on oil sanctions, but any further easing will depend on Tehran meeting U.S. demands on issues including opening the Strait of Hormuz and its nuclear program. Iran will not receive immediate access to billions of dollars in frozen funds. The deal, electronically signed by the U.S. and Iran on Sunday and set to be finalized this week, includes a prolonged ceasefire, the lifting of the U.S. and Iran blockade in the strategic Strait of Hormuz, and the opening of longer negotiations on Iran’s nuclear program.

Israeli officials are disappointed with the move. Lawmakers and senior figures in the U.S. and Israel oppose providing Iran with financial aid and easing pressure from the U.S. blockade before Iran makes significant concessions. Although the U.S. could reimpose the blockade on Iranian exports while keeping forces in the region, the paper said Washington appears to have yielded to Tehran. The memorandum of understanding also foresees much larger economic relief if Iran agrees to U.S. demands to destroy its enriched uranium stockpile and dismantle its nuclear program, and it says Washington is prepared to give Iran access to some frozen funds. One source said the U.S. has some flexibility on releasing assets and may do so before a final nuclear and other agreement is reached. Iran has said it wants about $12 billion up front and $24 billion during the 60-day negotiations that will begin under the initial deal.