• The US has proposed a temporary waiver on Iran oil sanctions, according to a source close to Iran's negotiation team cited by Tasnim news agency.
  • The potential waiver is seen as a move to stabilize global oil markets amid supply concerns and geopolitical tensions.
  • If implemented, the waiver could ease near-term price volatility but may face criticism for undermining the 'maximum pressure' campaign.

The United States has proposed a temporary waiver on oil sanctions against Iran, according to a source close to Iran's negotiation team who spoke to Iran’s semi-official Tasnim news agency. The development comes as global oil markets remain on edge over supply disruptions and elevated prices, with the Biden administration balancing energy security with its broader Iran policy.

Details of the proposed waiver remain unclear, including its duration and scope. However, the move suggests Washington is considering a limited, short-term relief measure aimed at easing upward pressure on crude prices while maintaining the core architecture of its sanctions regime. A person familiar with the matter said the proposal was floated during recent indirect talks between US and Iranian officials, though no formal agreement has been reached.

The announcement sent Brent crude futures down roughly 1.5% in early trading on Friday, as traders priced in the potential for increased Iranian oil exports. Iran has been exporting around 1.5 million barrels per day, largely to China, despite US sanctions — a flow that has contributed to global supply but also drawn scrutiny from US lawmakers.

Historical precedent suggests temporary waivers are often used as a pressure valve. During the Trump administration, waivers were granted to eight countries in 2018 before being phased out. In 2021, the Biden administration allowed Iraq to continue importing Iranian electricity using a similar waiver mechanism. Market analysts note that even a short-lived waiver could send a signal of de-escalation, potentially moderating risk premiums.

The move faces potential pushback from critics who argue it would weaken the 'maximum pressure' strategy, which aims to curb Iran's nuclear program and regional influence. "Without a full and enforceable agreement, a waiver risks being seen as a concession without concrete deliverables," said an analyst who follows US-Iran policy. The State Department declined to comment on the report, while the Treasury Department did not immediately respond to a request for comment.

This story has been updated to reflect market reaction and additional context from historical waiver episodes.