U.S. Treasury Revokes Iran Sanctions Relief Amid Renewed Tensions

On July 7, 2026, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) issued General License X1, revoking the June 21, 2026 General License X that had temporarily allowed transactions involving Iranian‑origin crude oil, petrochemical and petroleum products. The new license calls for the wind‑down of the earlier authorization, ending a short‑lived relaxation of U.S. sanctions on Iran’s energy sector.

The reversal follows a history of extensive U.S. sanctions on Iran since 1979, a brief easing under the 2015 JCPOA, and a re‑imposition after the United States withdrew in 2018. In 2025, President Trump’s NSPM‑2 pledged “maximum economic pressure” on Tehran, and in May 2026 the United States broadened sanctions on entities in China and the Middle East that facilitated Iranian oil flows. General License X had covered a wide range of maritime services—including docking, crew safety, repairs, and insurance—required for the handling of Iranian oil. Its termination signals a return to a stricter sanctions regime.