The US State Department reaffirmed the continued enforcement of a robust framework of sanctions against Iran even as Washington and Tehran engaged in “cautious diplomatic initiatives” that have culminated in a “preliminary agreement” over the release of a number of American citizens jailed in Iran and the release of billions of dollars of frozen Iranian assets.

Bloomberg revealed that months of “secret diplomacy” between the two nations have yielded progress, even over Tehran’s uranium enrichment, and have led to an “unofficial arrangement” concerning oil flows.

Additionally, it was revealed that American officials have been discreetly acknowledging their gradual easing of certain sanctions imposed on Iranian oil sales.

This is particularly significant as Iranian oil exports have surged to the “highest level in five years,” with Iran now shipping its largest amount of crude to China in over a decade.

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani hoped the prisoner exchange mediated by Doha will lead to a broader dialogue over Iran’s nuclear program.

Furthermore, the flow of supplies is aiding in moderating oil prices, which have fallen to less than $85 per barrel in London this week. This offers relief to consumers and central banks after years of rampant inflation.

Keeping the cost of gasoline—now nearing four dollars per gallon—under control could also support US President Joe Biden’s re-election campaign in 2024.

“It’s the traditional energy diplomacy game: cutting deals to get additional barrels,” said Helima Croft, head of global commodity strategy at RBC Capital Markets LLC in New York.

“US and Iranian economic interests are aligned when it comes to more barrels on the market,” remarked Croft.