WANA (Jul 08) – The U.S. Department of the Treasury has revoked a general license issued less than a month ago that allowed transactions involving Iranian crude oil, petrochemical products, and petroleum products, imposing new restrictions on such trade. Iranian officials have described the move as a violation of Article 10 of the memorandum of understanding between Tehran and Washington.

 

Under the new General License X1, companies and entities that had been operating under the previous authorization have up to 10 days to wind down their activities. Starting July 7, 2026, no new transactions—including the purchase, loading, or trade of Iranian crude oil, petrochemical products, or petroleum products—will be permitted.

 

At the same time, a U.S. official told Reuters that Iran’s recent actions in the Strait of Hormuz were “completely unacceptable” and warned that they would have consequences.

 

International media have reported that the revocation of the license, which had been introduced as part of the June 2026 understanding between Tehran and Washington aimed at reducing tensions, could undermine the fragile diplomatic arrangement between the two countries and increase the risk of renewed escalation.

 

Iranian officials argue that the decision is inconsistent with the commitments outlined in Article 10 of the memorandum of understanding. Under that provision, the United States had committed to maintaining and issuing the necessary Treasury authorizations for Iran’s crude oil, petrochemical, and petroleum exports, along with related services, including banking transactions, insurance, and shipping, until sanctions are lifted.

 

The move comes as Iranian media have also pointed to delays in implementing other provisions of the agreement, including the release of Iran’s frozen assets and the launch of a proposed $300 billion investment fund, describing them as additional points of dispute between the two sides.