OFAC revokes Iran General License X, sets July 17 wind-down under General License X1
US persons must complete wind-down of GL X-authorised Iranian crude and petrochemical transactions by 12:01 a.m. EDT July 17, 2026; no new transactions from July 7
Change
Effective July 7, 2026, the Department of the Treasury's Office of Foreign Assets Control (OFAC) revoked Iran-related General License X (dated June 21, 2026) and replaced it in its entirety with General License X1, which authorises only wind-down of previously authorised transactions in Iranian-origin crude, petrochemical and petroleum products through 12:01 a.m. EDT on July 17, 2026.
Why it matters
GL X1 removes the authorisation framework GL X provided and permits only wind-down of previously authorised activity. Operators must confine remaining transactions in Iranian-origin crude, petrochemical or petroleum products to those ordinarily incident and necessary to winding down GL X activity, completed before the July 17, 2026 cutoff, with any payment to a blocked person routed into a blocked, interest-bearing US account. No new purchases or loading are authorised on or after July 7, 2026, and transactions with a DPRK, Cuba, Covered Regions of Ukraine or Crimea nexus remain outside the licence.
Implications
- — Sanctions-screening and payments teams at US financial institutions must remove General License X from authorisation logic and clear GL X-related Iranian-origin energy transactions as wind-down-only before 12:01 a.m. EDT on July 17, 2026 — any payment to a blocked person must settle into a blocked, interest-bearing US account, and transactions unsettled at the cutoff lose OFAC authorisation.
- — US commodity traders, refiners and charterers holding GL X-authorised Iranian-origin cargoes must halt new purchases and loading from July 7, 2026 and confine remaining activity to wind-down before the July 17 cutoff — new purchases or loading on or after July 7 are unauthorised.
- — US exporters, brokers and logistics providers moving Iranian-origin crude, petrochemical or petroleum products must confirm each remaining shipment or contract qualifies as GL X1 wind-down before continuing — activity continued under GL X's terms is unauthorised.
Who is affected
- — Sanctions-screening and payments teams at US financial institutions
- — US commodity traders, refiners and charterers holding GL X-authorised Iranian-origin cargoes
- — US exporters, brokers and logistics providers of crude, petrochemical and petroleum products
What to watch
- — 12:01 a.m. EDT, July 17, 2026 — wind-down authorisation for prior GL X transactions expires; transactions not completed by this cutoff lose authorisation under GL X1.