US Revokes Licence Allowing Iranian Oil Sales

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury on Tuesday (7/7) revoked a licence that allowed the sale of Iranian oil until 21 August. A new general licence, titled ‘Revocation and Wind Down of June 21, 2026 Authorization for the Production, Delivery and Sale of Crude Oil, Petrochemical Products, and Petroleum Products of Iranian Origin’, was signed by OFAC Director Bradley Smith and took effect on Tuesday. The new licence requires that transactions approved under the previous sanctions exemption be phased out by 17 July at the latest. The US stated the decision was made following an Iranian attack on three oil tankers near or within the Strait of Hormuz. Concurrent with the revocation of the sanctions exemption, the US military announced it had launched a series of powerful strikes against Iran in response to the alleged attacks on three commercial vessels. The US had exempted sanctions on Iranian oil after both parties signed a memorandum of understanding (MoU) for a ceasefire in June. The exemption, among other things, permitted the import of Iranian crude oil into the US and payments to Tehran in US dollars.