US Treasury Issues New License Temporarily Suspending Oil Sanctions on Iran
According to the International Desk of Webangah News Agency, the U.S. Treasury Department, through General License X, has temporarily suspended a portion of the sanctions related to Iran’s oil trade, authorizing certain transactions involving Iranian crude oil, petroleum products, and petrochemicals until August 21, 2026.
This license, issued by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), permits all transactions ordinarily necessary for the production, sale, delivery, transport, or unloading of Iranian crude oil, petrochemical products, and petroleum products until 00:01 AM on August 21, 2026.
The license clarifies that this exemption extends to certain vessels previously subjected to U.S. sanctions, provided their activities are within the scope of operations related to the production, sale, transfer, or unloading of Iranian oil and products.
U.S. Imports of Iranian Oil Also Authorized
Under the provisions of General License X, the import of Iranian crude oil, petroleum products, and petrochemical products into U.S. territory is also authorized, provided it is part of the process for the authorized sale, delivery, or unloading of these products.
U.S. Dollar Payments to Iran Facilitated
Another section of the document states that payments for the purchase of Iranian crude oil, petrochemical products, and petroleum products can be made in U.S. dollars. Accordingly, funds owed to Iran, the Iranian government, or sanctioned individuals for the purchase of these products will be eligible for payment in U.S. dollars.
Ancillary Services Also Covered by the License
Beyond the sale and transfer of oil, this license encompasses a wide range of related services, including:
- Docking and anchoring of vessels carrying Iranian oil and products.
- Vessel management services.
- Crew supply.
- Bunkering services for vessels.
- Navigational services.
- Vessel registration and flagging.
- Insurance services.
- Technical classification of vessels.
- Maritime salvage operations.
- Emergency repairs and environmental measures related to oil and vessels.
License Exceptions
The U.S. Treasury Department concurrently announced that this license does not apply to individuals and entities associated with North Korea, Cuba, sanctioned regions of Ukraine, nor to activities prohibited under other U.S. sanctions regimes.
A Significant Step in Easing Oil Restrictions
The issuance of this license comes at a time when parts of the economic sanctions against Iran are under review following a recent agreement between Tehran and Washington. The new license can be assessed as one of the most significant practical measures aimed at facilitating the export of Iran’s oil and petrochemical products and reducing associated financial and trade restrictions.
