US Offers Iran Oil Waiver During Talks, Tehran Demands Full Sanctions Removal

On May 18, 2026, Iran’s semi-official Tasnim News Agency reported that the US has offered a temporary suspension of oil-related sanctions as part of new negotiation texts. The waiver would allow limited Iranian oil exports while talks continue, marking a shift from earlier proposals where relief was only considered after a final agreement.

Details Of The Waiver

• According to reports, the US proposal involves:
• Temporary waiver of OFAC (Office of Foreign Assets Control) sanctions on Iran’s oil sector.
• Relief lasting only during the negotiation period, not a permanent lifting.
• Aimed at building confidence and keeping talks alive amid regional tensions.
• Iran, however, insists that complete removal of sanctions must be guaranteed in any final deal.

Diplomatic Context

The waiver discussions are tied to efforts to revive the Joint Comprehensive Plan of Action (JCPOA) nuclear deal. Negotiations are currently mediated by Pakistan, with Iran submitting a revised 14-point proposal to the US. The talks follow a fragile ceasefire in the Gulf region after months of escalations, including drone strikes and maritime tensions. 

Market Impact

• Global oil markets reacted immediately:
• Brent crude fell by about 1.5%, easing from $112 to $107.5 per barrel.
• Analysts noted that even temporary Iranian exports could stabilize supply and reduce volatility.
• Traders remain cautious, as no official US confirmation has been issued. 

Key Highlights

•⁠  ⁠US reportedly agrees to temporary waiver of Iran oil sanctions during talks

•⁠  ⁠Waiver allows limited exports while negotiations continue

•⁠  ⁠Iran demands full sanctions removal as part of any final deal

•⁠  ⁠Talks mediated by Pakistan, with Iran submitting revised 14-point proposal

•⁠  ⁠Global oil prices eased after reports of waiver surfaced

•⁠  ⁠No official US government confirmation yet

Sources: Moneycontrol, The Morung Express, The Indian Express, A News, Roic News