Overview
- The U.S. Treasury has issued a 60-day general license allowing Iran to produce, sell and receive payment for oil in U.S. dollars, and Treasury Secretary Scott Bessent said Iran will invoice in dollars again.
- The license is time-limited and dependent on implementation and a policy decision to renew it, so restored dollar settlement could be reversed after the 60-day window.
- Dollar payments route through U.S.-connected banks, which gives Washington the ability to trace transactions and, if needed, block or freeze funds, restoring a key tool lost when Tehran moved away from dollar clearing.
- Iran moved much of its oil trade into China’s system using yuan settlements, independent 'teapot' refineries, exchange houses and a shadow fleet to hide flows, and the U.S. has targeted those networks with sanctions and about $1 billion in seized crypto through Operation Economic Fury.
- The arrangement’s durability is uncertain because Beijing has instructed firms to ignore U.S. sanctions and broader de-dollarization efforts by China, Russia and BRICS remain in place, so markets and U.S. leverage will depend on whether the license is extended and how China and commercial buyers respond.