U.S. Treasury Revokes Iran Sanctions License X, Ends Broad Oil Trade Authorization

On July 7 2026 the U.S. Treasury’s Office of Foreign Assets Control (OFAC) issued General License X1, which revokes and supersedes General License X. License X had temporarily authorized a wide range of transactions involving Iranian‑origin crude oil, petroleum products and petrochemicals, a relief granted on June 22 2026 as part of a US‑Iran memorandum of understanding.

General License X1 eliminates all new authorizations and permits only “ordinarily incident and necessary” wind‑down transactions through 12:01 a.m. EDT on July 17 2026. It also changes payment rules, requiring any funds owed to blocked persons to be deposited into blocked, interest‑bearing U.S. accounts. The reversal follows attacks by Iran’s Islamic Revolutionary Guard Corps on commercial tankers in the Strait of Hormuz and subsequent U.S. retaliatory strikes.

Companies that had begun or planned Iranian oil‑related deals must immediately review pending contracts, cargoes in transit and payment mechanisms to determine eligibility for the limited wind‑down period, incurring compliance costs and heightened risk.