OFAC revokes Iran oil trade license, allows 10-day wind-down

WASHINGTON, July 7, 2026 — The US Treasury Department’s Office of Foreign Assets Control revoked Iran-related General License X effective Tuesday and replaced it with General License X1, ending a temporary authorization that had allowed transactions tied to the production, delivery and sale of Iranian-origin crude oil, petrochemical products and petroleum products through Aug. 21, 2026.

Under the new license, OFAC is allowing only transactions “ordinarily incident and necessary” to wind down activity previously authorized under General License X, with that relief set to expire at 12:01 a.m. EDT on July 17, 2026. The document says payments to blocked persons must be made into a blocked, interest-bearing account in the United States.

OFAC also made clear that, apart from activity needed to wind down prior business, the new authorization does not permit any new transactions, including purchases or loading of Iranian-origin crude oil, petrochemical products or petroleum products on or after July 7.

The agency said the amended license also does not authorize transactions involving persons located in or organized under the laws of North Korea, Cuba, the covered regions of Ukraine or Crimea, or entities owned or controlled by, or in joint venture with, such persons. It further said other prohibited transactions remain barred under executive orders and sanctions regulations not referenced in the license.

The move marks a sharp narrowing of the June 22 measure, which OFAC had described as authorizing the production, delivery and sale of Iranian-origin crude oil, petrochemical products and petroleum products through Aug. 21, 2026.