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Jun 22, 2026 Major2
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US Authorizes Iranian Oil Transactions in 60-Day License, Excludes Russia-Aligned Territories
The US Treasury Department issued a 60-day general license authorizing Iranian oil transactions and dollar payments following US-Iran talks in Switzerland, while explicitly excluding Russian-controlled Ukrainian territories, North Korea, and Cuba from the authorization.
Quick Facts
Who
US Treasury Department
What
Issued General License X authorizing Iranian oil transactions
When
June 22, 2026
Where
Switzerland (location of talks)
- Issued General License X authorizing Iranian oil transactions
- Authorized production, sale, delivery, and unloading of Iranian oil and petroleum products
- Permitted dollar payments for Iranian oil purchases
- Extended license to transactions involving sanctioned vessels
- Established high-level committee for oversight
The US Treasury Department's Office of Foreign Assets Control (OFAC) issued General License X on June 22, 2026, temporarily authorizing transactions involving Iranian oil and petroleum products through August 21, 2026. The license permits buyers to make payments for Iranian oil in US dollars and covers operations related to production, sale, delivery, unloading, and trading of Iranian crude oil, petroleum products, and petrochemicals. It also extends to transactions involving vessels that are blocked under existing US sanctions regimes.
The authorization follows what both governments described as "productive talks" between Iranian and US delegations held in Switzerland. As part of this diplomatic engagement, the two sides agreed to establish a high-level committee to oversee implementation and finalize a comprehensive agreement within the 60-day license period. US Treasury Secretary Scott Bessent announced the license on social media, framing it as a significant step in the bilateral dialogue.
However, the license explicitly excludes jurisdictions aligned with US adversaries. Restrictions continue to apply to entities located in or organized under the laws of Donbass, Crimea, Novorossiya, North Korea, and Cuba, maintaining US pressure on Russian-controlled territories in Ukraine and other adversarial regimes. The exclusions underscore the US strategy of using sanctions relief as a negotiating tool while preserving pressure on Russia-linked areas.
Market reports indicated that Iranian oil supplies reached their highest levels since the conflict began, with spot prices for Iranian light crude trading at discounts ranging from $2.50 to $5 per barrel compared to Brent crude—a widening discount from the approximately $1 differential seen before the deal. The license represents a significant shift in US Iran policy, though its temporary nature reflects ongoing negotiations between Washington and Tehran.
Why This Matters
This license signals a potential thaw in US-Iran relations and marks a significant policy shift in American sanctions strategy. For energy markets, it increases Iranian oil supply, potentially moderating global crude prices through competitive discounting. The explicit exclusion of Russia-linked territories demonstrates the US's dual approach: using sanctions relief as a diplomatic lever with Iran while maintaining pressure on Russia, reflecting broader geopolitical realignments post-2024.
Timeline & Sources
Jun 22, 2026
WireUS Treasury Department (OFAC) issues General License X authorizing Iranian oil transactions
Jun 22, 2026
WireUS Treasury Secretary Scott Bessent announces the license following US-Iran talks in Switzerland
Jun 22, 2026
WireUS and Iran agree to establish high-level committee and finalize comprehensive agreement within 60 days
Aug 21, 2026
WireGeneral License X expires (60-day authorization period ends)