What is the core U.S. policy shift toward Iran described in the news, and what key mechanism enables it?

The Trump administration is orchestrating a 'stunning reversal' of decades of U.S. sanctions on Iran as part of a broader deal to open the Strait of Hormuz, lower global energy prices, and end its 'unpopular war.' A central mechanism enabling this shift is the June 17, 14-point memorandum of understanding signed by Trump and Iranian President Masoud Pezeshkian, which commits to removing 'all US sanctions on Iran on an agreed upon schedule' and directs the Treasury Department to issue 60-day waivers for existing sanctions while technical negotiations proceed.

How is the U.S. facilitating Iranian oil sales under the new arrangement, and what financial hurdle remains?

The U.S. is facilitating Iranian oil sales by authorizing them outright and issuing General License X, which permits transactions to be conducted in 'US dollar-denominated funds'—a marked departure from the longstanding goal of locking Tehran out of the U.S. financial system; however, major U.S. or U.S.-linked banks remain hesitant to process such transactions due to compliance risks, creating a significant implementation hurdle despite Treasury Secretary Scott Bessent’s confirmation that Iran will invoice oil sales in U.S. dollars.

Trump's U-Turn on Iran Sanctions Would Unravel Decades of Curbs

Jun 28, 2026

The Trump administration plans to lift decades of sanctions on Iran to lower global energy prices and open the Strait of Hormuz. This move authorizes Iranian oil sales in USD and potential purchases of US agricultural goods, creating uncertainty for financial institutions.

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