The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has revoked General License X, the sweeping authorization issued on June 21 that had permitted the production, delivery, and sale of Iranian-origin crude oil, petrochemical products, and petroleum products.

Effective July 7, the license is replaced by newly issued General License X1, 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.”

General License X had been issued as part of the implementation of the Islamabad Memorandum of Understanding, signed by the United States and Iran on June 17 following Operation Epic Fury, the U.S.-Israel military campaign against Iran. The license marked one of the broadest rollbacks of Iran sanctions in decades, authorizing transactions ordinarily incident to Iranian oil production and sale, including dollar-denominated payments, vessel operations, insurance, and shipping — relief that outside analysts estimated could unlock several billion dollars for Tehran from stranded crude inventories.

The license had been set to run through August 21 as part of a 60-day negotiating window between Washington and Tehran, with further sanctions relief contingent on Iran’s compliance with the MOU’s terms, including progress on nuclear issues and the reopening of the Strait of Hormuz. As with all OFAC general licenses, GL X remained subject to amendment or withdrawal at any time at the administration’s discretion.