The ongoing negotiations between Washington and Tehran are not limited to only 60 days, which could lead to an extension of the period of exemption from Iran’s petro-sanctions.
China is the only country that continues to buy Iranian oil, others have remained cautious, due to the uncertainty surrounding the possible re-imposition of sanctions by Washington on Tehran, US Treasury Secretary Scott Bessant (pictured) said this week, describing the emerging situation in the global oil market, following the signing of the Memorandum of Understanding (M o U) between the US and Iran on June 17. (https://iranwire.com/en/news/154378-us-treasury-secretary-china-is-the-only-buyer-of-iranian-oil/).
The M o U otherwise contains a provision—”Authorization for the production, delivery and sale of crude oil, petrochemicals and petroleum products of Iranian origin until August 21, 2026″ (https://ofac.treasury.gov/media/936206/download?inline).
Meanwhile, China has been the leading buyer of Iranian oil for years (https://www.uscc.gov/research/china-iran-fact-sheet-short-primer-relationship), where Beijing and Tehran long established petro-buying and selling in yuan.
Now, when Bessent says that “Iran could start invoicing oil sales in US dollars as part of ongoing negotiations with Washington” (https://shafaq.com/en/World/US-Treasury-Iran-could-trade-oil-in-dollars)- why is “China the only one”? That is, why have the others “remained cautious” to venture into that newly offered, at first glance short-term business…?
The US Treasury Secretary is actually very precise in his announcement about the possibility of “dollarization” of Iranian oil. Namely, Scott Bessent explicitly states that such a possibility exists “within the ongoing negotiations with Washington”. But nowhere does it say that these negotiations will last only 60 days. The M o U states very clearly that this initial time frame is “expandable”. That is “extensions” are possible…
How realistic is it to expect that the ongoing negotiations between the US and Iran could continue even after the first 60 days, so that the “removal of Iranian petro sanctions” might last even longer? The answer seems to be still uncertain. (https://www.middleeastmonitor.com/20260702-us-iran-expected-to-hold-direct-talks-in-doha-in-3rd-week-of-july-sources/).
In that arena, the “dollarization” of Iranian oil could be a magnet of importance for both Washington and Tehran. “The dominance of the dollar is essential… all we are doing is pushing the dollar… it has never stopped being the centre of the global currency system, but we are strengthening it,” Bessent pointed out in an interview with the CNBC network. (https://www.cnbc.com/2026/06/24/cnbc-transcript-us-treasury-secretary-scott-bessent-speaks-with-cnbcs-joe-kernen-on-squawk-box-today.html).
It seems that Iranian oil could have a place and a role in the mission of further strengthening the US dollar? Such an “assignment” then would probably not be limited to only 60 days.
