The move allows the production, sale, delivery and import of Iranian crude and petroleum products until August 21, 2026
The United States has temporarily eased key sanctions on Iran by authorising the production, sale, delivery and transportation of Iranian crude oil, petrochemical products and petroleum products until August 21, 2026.
The decision was announced through General License X issued by the US Treasury Department’s Office of Foreign Assets Control (OFAC), marking one of the most significant sanctions relief measures granted to Tehran in recent years.
According to the licence, transactions that were previously prohibited under multiple Iran-related sanctions programmes will now be permitted through 12:01 a.m. Eastern Daylight Time on August 21, 2026.
The move comes amid ongoing diplomatic negotiations between Washington and Tehran following a memorandum of understanding signed last week that established a 60-day framework for broader discussions on regional security and other outstanding issues.
US Treasury Secretary Scott Bessent said the decision was linked to commitments made by Iran during the negotiations, including support for maintaining free navigation through the Strait of Hormuz and cooperation with international nuclear inspectors.
What the new US licence allows
According to the Treasury Department’s General License X, the following activities are now authorised until August 21, 2026:
- Production, sale and delivery of Iranian-origin crude oil.
- Export and international shipment of Iranian petroleum products.
- Importation of Iranian crude oil, petrochemicals and petroleum products into the United States where such imports are connected to authorised transactions.
- Offloading, transportation and handling of Iranian oil cargoes.
- Vessel operations linked to Iranian oil shipments, including docking, anchoring and maritime services.
- Insurance, registration, classification and vessel management services related to authorised Iranian oil trade.
- Payments owed to Iran for authorised oil and petroleum purchases, including transactions conducted in US dollars.
Key restrictions remain in place
The licence does not amount to a complete lifting of sanctions. The Treasury document specifically states that the authorisation does not permit:
- Transactions involving North Korea.
- Transactions involving Cuba.
- Transactions involving sanctioned regions of Ukraine, including Crimea and territories covered under existing US sanctions.
- Activities prohibited under other US sanctions programmes not covered by the licence.
Iran welcomes sanctions relief
In a statement, Iranian Foreign Minister Abbas Araghchi said restrictions on Iranian oil and petrochemical exports had been lifted, the blockade had been eased, some frozen assets were being released and reconstruction initiatives were being launched for Iran.
However, the US Treasury licence itself does not explicitly reference the release of frozen Iranian assets.
The sanctions waiver follows weeks of diplomatic engagement between Washington and Tehran after a period of military tensions and instability across West Asia.
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