The Trump administration has agreed to allow Tehran to immediately resume oil and fuel exports under a newly negotiated agreement aimed at ending the conflict between the United States and Iran, providing Tehran with a significant economic incentive as both sides move toward broader negotiations over its nuclear program and regional activities, The Wall Street Journal reported Tuesday.
Under the memorandum of understanding signed electronically Sunday and expected to be finalized this week, the U.S. will waive sanctions on Iranian oil sales as soon as the agreement takes effect, according to people familiar with the arrangement.
The waivers also cover critical services needed to facilitate exports, including banking, shipping, and insurance.
The move marks one of the earliest and most consequential forms of sanctions relief offered to Tehran under the agreement, which includes an extended pause in hostilities, the lifting of U.S. and Iranian blockades in the Strait of Hormuz, and a framework for future negotiations over Iran's nuclear program.
A senior U.S. official said Tuesday that while Iran would receive immediate relief related to oil exports, any long-term sanctions relief would depend on Tehran's compliance with U.S. demands, including maintaining open access through the Strait of Hormuz and addressing concerns about its nuclear activities, according to The Wall Street Journal.
Iran will not immediately gain access to its estimated $100 billion in frozen assets, the official said.
The agreement comes amid growing debate in Washington and Jerusalem over whether the U.S. should provide Tehran with economic benefits before securing substantial concessions on its nuclear program.
Critics argue that allowing Iranian oil exports weakens one of Washington's most powerful sources of leverage.
"Allowing Iran to export its oil concedes a key point of U.S. leverage," said Farzin Nadimi, an Iran specialist at the Washington Institute. He said administration officials appear to believe economic incentives are necessary to keep negotiations moving and secure Iranian cooperation.
"The White House thinks that these kinds of sweeteners are required to make Iran make concessions," Nadimi said.
The administration has defended the approach as a practical means of stabilizing energy markets while creating momentum for broader negotiations.
According to United Against Nuclear Iran, a nonprofit organization that tracks Iranian shipping activity, an Iranian supertanker carrying crude oil departed the port of Chabahar and crossed what had been a U.S. maritime blockade in the Gulf of Oman on Tuesday while transmitting its location data publicly.
The organization said it was the first such voyage since the blockade was imposed in April.
Senior Trump administration officials said Monday that discussions with Iran have included a range of potential economic incentives, including expanded sanctions relief, limited access to frozen funds, and the possible creation of a reconstruction mechanism to help repair damage caused by the conflict.
"We're going to be willing to be extraordinarily generous in opening up their economy and opening up the sanctions relief," one administration official said during a briefing. "Everything is on the table and at the same time nothing is on the table if it doesn't come along with real performance."
President Donald Trump later stated on social media that the U.S. would not contribute financially to a proposed $300 billion reconstruction fund that has been discussed as part of the broader diplomatic framework.
The agreement envisions substantially greater economic benefits for Iran if it agrees to dismantle its nuclear program and eliminate its stockpile of enriched uranium, according to people familiar with the negotiations.
The administration is also considering granting Iran access to some of its frozen assets before a final agreement is reached, although details remain under discussion.
Iranian officials have reportedly sought some $12 billion in immediate financial relief and another $24 billion during a proposed 60-day negotiating period that would follow an initial agreement.
Iran's frozen assets are estimated at roughly $100 billion and consist largely of oil revenues and foreign reserves held overseas because U.S. sanctions prevent transfers through the international banking system.
Brian Freeman ✉
Brian Freeman, a Newsmax writer based in Israel, has more than three decades writing and editing about culture and politics for newspapers, online and television.