OFAC issues Iran General License X authorizing Iranian-origin crude and petroleum sales through 21 Aug 2026
Iranian-origin crude and petroleum transactions are authorised only within General License X conditions and only through 21 August 2026
Change
On 22 June 2026, the U.S. Treasury's Office of Foreign Assets Control (OFAC) issued Iran General License X, authorizing transactions ordinarily incident and necessary to the production, delivery, and sale of Iranian-origin crude oil, petrochemical, and petroleum products through 21 August 2026.
Why it matters
Transactions outside General License X's conditions remain prohibited under the underlying Iran, Russia, WMD-proliferation, and terrorism authorities. The licence covers transactions involving vessels blocked under those authorities and products from entities sanctioned under 31 CFR parts 560, 561, and 594. Payment owed to Iran, the Government of Iran, or any blocked person may be made in U.S. dollars. The licence does not authorise transactions involving DPRK, Cuba, or the Covered Regions and Crimea Region of Ukraine.
Implications
- — Banks' sanctions-compliance and payments teams must confirm a transaction meets every General License X condition before processing financing or settlement for Iranian-origin crude, petrochemical, or petroleum products — transactions outside the licence are unauthorised and processing them is a prohibited dealing.
- — Energy traders, refiners, and shippers handling Iranian-origin hydrocarbons must execute production, delivery, and sale only on documented terms satisfying General License X and only before 21 August 2026 — transactions outside the licence or after expiry remain prohibited.
- — Banks' sanctions-compliance teams and shippers must exclude any transaction with a DPRK, Cuba, Covered-Regions, or Crimea nexus from General License X reliance — these are carved out of the authorisation and remain prohibited even when all other conditions are met.
Who is affected
- — Banks' sanctions-compliance and payments teams
- — Energy traders, refiners, and shippers handling Iranian-origin hydrocarbons
- — Corporate legal and compliance teams documenting Iranian-origin hydrocarbon deals
What to watch
- — 21 August 2026, 12:01 a.m. EDT: General License X expires — Iranian-origin crude and petroleum transactions revert to prohibited under the underlying authorities.