US opens the door to Iranian oil: dollars flowing for the first time in 40 years
Washington issued a 60-day licence letting Iran sell oil in dollars. A decision that could ease what you pay at the pump.
Some decisions look technical and far away, yet they end up reaching the fuel pump. This is one of them. The US Treasury has issued a licence that, for 60 days, lets Iran produce and sell oil, petrochemicals and refined products — and, for the first time in more than four decades, do so in dollars.
The licence, known as General License X, was issued on 22 June and runs until 21 August. It is not a permanent lifting of sanctions: it’s a temporary window, tied to a memorandum of understanding signed on 17 June between Washington and Tehran that aims to halt military hostilities and fully reopen the Strait of Hormuz.
Why this matters for your wallet
The eye-catching figure is the millions of barrels of Iranian crude that had effectively been stuck in the Gulf with no buyer. With this opening, an estimated 67 million barrels could return to the market — relief that helps explain why Brent fell more than 3.5% to around 78 dollars right after the announcement.
For anyone filling up a car in Portugal, more oil sloshing around the world usually means less pressure on prices. It’s no guarantee — geopolitics can change mood fast — but it’s a step in the right direction after weeks of jitters.
The details of the licence are published by the US Treasury, which coordinates these sanctions through OFAC.
See also: Oil eases and gives wallets a breather and the tension in the Strait of Hormuz.
Imagem: Wikimedia Commons