The US Treasury Department has revoked the general license that allowed limited Iranian oil sales, according to a statement from the Office of Foreign Assets Control. The department confirmed that the previously issued 'General License X' from June 21, 2026, was canceled effective July 7, 2026, and replaced with a new 'General License X1'.

The earlier license had temporarily lifted parts of US sanctions on Iranian oil exports following what were described as positive talks between the two countries aimed at ending ongoing conflict. That 60-day suspension had opened the way for Iranian oil production, supply, and sales in the US market.

Reuters, citing unnamed US officials, reported that Iran’s recent actions in the strategic Strait of Hormuz were deemed unacceptable by Washington. The decision to revoke the license came shortly after three commercial oil tankers were attacked in the area within 24 hours, prompting the US to impose this punitive measure.