US Has Officially Lifted Sanctions From Iranian Oil

The United States has officially issued a 60-day sanctions waiver covering Iranian oil, petrochemical products, and petroleum-related exports.

Negotiations continue under a broader diplomatic framework while the US provides Tehran with temporary economic relief.

Treasury Secretary Scott Bessent announced on X that the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) had issued General License X, authorizing a broad range of transactions involving Iranian-origin crude oil, petroleum products, and petrochemical products through August 21, 2026.

The authorization creates a 60-day window during which activities ordinarily required for the production, sale, delivery, transport, and offloading of covered Iranian energy products may proceed without requiring individual licenses from U.S. authorities.

Broader Relief Measures

According to OFAC, the license covers services connected to the energy trade, including vessel management, insurance, crewing, bunkering, classification services, salvage operations, emergency repairs, environmental protection measures, and crew safety requirements.

The authorization also permits payments in U.S. dollar-denominated funds to Iran, the Government of Iran, or sanctioned Iranian entities for transactions covered by the license.

Unlike the earlier General License U issued in March 2026, which was limited to oil already loaded onto vessels before a specific cutoff date, General License X also covers production activities, making it significantly broader in scope.

The waiver is scheduled to remain in force for exactly 60 days, ending on August 21, 2026, unless extended by U.S. authorities.

Linked To Diplomatic Framework

The measure follows a broader diplomatic process between Washington and Tehran that emerged after recent regional tensions involving Iran, Israel, and U.S. military operations.

According to documents released by the Treasury Department, the authorization forms part of a temporary framework intended to facilitate negotiations over a longer-term arrangement.

The broader diplomatic effort reportedly includes provisions related to sanctions relief, maritime security, and nuclear monitoring.

The sanctions waiver is connected to ongoing negotiations aimed at reaching a more comprehensive agreement before the expiration of the 60-day period.

No final sanctions settlement has been announced, and existing U.S. sanctions on Iran largely remain in place outside the activities specifically authorized by General License X.

Activities Still Restricted

The license does not authorize transactions involving North Korea, Cuba, Crimea, or other territories covered by separate U.S. sanctions programs.

OFAC also stated that the waiver does not override unrelated sanctions restrictions or permit dealings prohibited under other U.S. authorities.

Companies participating in covered transactions remain responsible for ensuring compliance with all applicable sanctions regulations and due diligence requirements.

Potential Market Impact

Iran possesses some of the world's largest oil and natural gas reserves, and energy exports remain a critical source of government revenue.

The temporary authorization could allow additional Iranian crude oil and petroleum products to reach international markets during the 60-day period.

Analysts have noted that increased supply could influence global energy prices, particularly following recent disruptions linked to tensions around the Strait of Hormuz.Crude Oil WTI

The measure may also provide short-term economic relief for Iran's energy sector while negotiations continue.

However, because the authorization is temporary and limited in duration, uncertainty remains regarding the long-term status of sanctions after August 21.

Treasury Details

OFAC stated that General License X authorizes transactions "ordinarily incident and necessary" to the production, sale, delivery, or offloading of covered Iranian-origin energy products.

The license entered into effect immediately upon issuance on June 22, 2026, and remains valid for approximately 60 days.

The authorization applies to crude oil, petroleum products, and petrochemical products originating from Iran, including transactions involving certain previously sanctioned Iranian entities where specifically covered by the license.