US Treasury Revokes Iran Oil Sales Authorization, Sets July 17 Wind-Down Deadline

The US revoked its general license authorizing certain Iranian oil transactions and allowed a wind-down period through July 17, the Department of the Treasury's Office of Foreign Assets Control said in a statement on Tuesday. The Department revoked the earlier Iran-related General License X and replaced it with General License X1, effective July 7. The new license replaces the June 21 authorization in its entirety. On June 22, OFAC issued Iran General License X, "Authorizing the Production, Delivery and Sale of Crude Oil, Petrochemical Products, and Petroleum Products of Iranian-Origin through August 21, 2026." However, Tuesday's license has revoked this authorization of new transactions involving the production, purchase, loading, sale, delivery, or offloading of Iranian crude oil, petrochemical products, or petroleum products on or after July 7, except where necessary to complete the wind-down. The new license also excludes transactions involving parties in North Korea, Cuba, or the covered and Crimea regions of Ukraine, as well as activities prohibited under other applicable sanctions authorities. The US action followed reports from the British navy-linked United Kingdom.