News
08 Jul, 2026
Iran Update: OFAC Revokes Iran Sanctions Waiver Issued on 17 June 2026
Tony Paulson
Head of Asia & Corporate Director
The temporary sanctions relief for Iranian oil and petrochemical products described in our 30 June 2026 News Item is no longer in force.
On 7 July 2026, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) revoked General License X (GL X) and issued General License X1 (GL X1), effective immediately. General License X1 supersedes General License X in its entirety.
- General License X (22 June 2026) authorised through 21 August 2026 transactions ordinarily incident to the production, sale, delivery and offloading of Iranian-origin crude oil, petrochemical products and petroleum products, extends to transactions involving blocked vessels and to services including vessel management, crewing, bunkering, insurance, classification and salvage, and permits buyers to pay Iran directly in US dollars.
- General License X1 (7 July 2026) no longer authorises new commercial transactions.
Instead, GL X1 provides a limited wind-down authorisation permitting only transactions through 12:01 a.m. EDT on 17 July 2026 that are ordinarily incident and necessary to wind down activities previously authorised under General License X. The licence does not permit:
- new purchases of Iranian-origin crude oil, petroleum products or petrochemical products;
- new sales contracts;
- new shipments or deliveries initiated after 7 July 2026; or
- expansion of activities beyond those already authorised before the revocation.
EU and UK measures remain in force
As previously reported, the European Union (EU) and United Kingdom (UK) Iranian sanctions measures remain fully in force, meaning that even under GL X the Association was unable to provide cover for the carriage of Iranian-origin crude oil, petroleum products or petrochemical products.
Members are reminded that cover is not available for any trade that breaches applicable sanctions. Members with any questions on this or any other sanctions matter should contact the Managers.