The US Office of Foreign Assets Control (OFAC) has issued a Temporary General License authorizing the delivery and sale of Iranian‑origin crude oil, petroleum products and petrochemical products until 12:01 A.M. EDT, 21 August 2026.
The move follows months of intensified US-Iran tensions and the temporary blockade of the Strait of Hormuz, which disrupted worldwide energy flows. As per the document, both aspects currently agreed to a 14‑point Memorandum of Understanding, underneath which US devoted to offering waivers for exports of Iranian crude and derivatives.
The General License authorizes all “forbidden transactions that are incidental and vital in relation to the manufacturing, sale, delivery, or offloading of Iranian origin crude oil, petrochemical products, or petroleum products,” such as activities involving certain sanctioned Iranian vessels or manufacturers. It also allows use US‑denominated funds for payments owed to Iran for the acquisition of covered goods.
Moreover, the update cautions that this does not automatically boost to all same bills, mentioning that “the language does not explicitly authorize payments in U.S.-denominated funds for all incidental and important transactions as well.”
The authorization excludes any transactions including North Korea, Cuba, Crimea or other areas of Ukraine, as well as entities owned or controlled by persons in those jurisdictions. Transactions that fall below other sanctions programs stay forbidden, and reliance in this license is not allowed wherein additional restrictions apply.
As per an update from Lakshmikumaran & Sridharan, a law firm, while the license forms a limited window for businesses to interact in earlier confined Iranian‑origin energy trade, there is a need for careful risk assessment. Companies must make certain that no non‑covered sanctions regimes, non‑authorized sanctioned persons, or comprehensively sanctioned jurisdictions are included before proceeding, the law firm stated in an update.
Transactions which include sanctioned vessels or persons that have been sanctioned beneath another legal authority aren’t authorized by this license. For example, a transaction including an entity or vessel sanctioned below the US sanctions regime against Russia, or an unstated legal authority against Iran, isn’t authorized via this license.
The license does not apply to transactions which involve individuals or entities located in or integrated under the legal guidelines of North Korea, Cuba, Ukraine, and the Crimea Region of Ukraine.
