U.S. Cancels License Permitting Iranian Oil Sales

The United States has tightened sanctions on Iran by canceling a general license that had temporarily permitted transactions related to Iranian oil. The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) issued a new general license that supersedes a previous one from June 21.

The revoked license had allowed for the production, delivery, and sale of Iranian crude oil, petrochemicals, and petroleum products. This temporary exemption was set to expire on August 21. However, the new directive effectively halts all such activities.

As of July 7, no new transactions involving Iranian oil products are allowed. This includes any purchases or loadings of these goods. The OFAC has provided a grace period until July 17 for any existing transactions authorized under the previous license to be completed and settled.

This action signifies a stricter enforcement of sanctions against Iran's energy sector, aiming to further limit the country's oil revenue. The previous license had offered a temporary waiver, allowing certain normally prohibited activities related to Iranian oil, with payments permitted in U.S. dollars.