On Friday, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) announced a new general license that permits the sale and delivery of Iranian crude oil and petroleum products that are already loaded on vessels. This measure aims to relieve strain on global energy markets affected by ongoing conflict in the Middle East. The General License U allows transactions related to the sale and offloading of Iranian oil loaded onto vessels as of March 20, extending through April 19. This authorization notably facilitates the movement of oil already in transit.
Treasury Secretary Scott Bessent described the initiative as a targeted intervention rather than a fundamental policy change. He emphasized that the goal is to enhance the global energy supply and maintain market stability. The license encompasses broader activities, including docking, emergency repairs, and essential shipping services such as insurance and vessel management.
While this temporary measure aims to unlock approximately 140 million barrels of crude oil that could remain stranded due to sanctions, it specifically does not allow for new purchases or production. OFAC reassured that restrictions on Iran’s revenue channels remain intact, and the authorization excludes transactions involving North Korea, Cuba, and specific Russian-occupied areas in Ukraine. This intervention follows a year after the Trump administration’s renewed pressure campaign against Iran’s oil sector.
