GL X prices relief Europe cannot buy

Oil sanctions work through two legally separate systems that are not coordinated with each other. The US system is run by OFAC, part of the US Treasury, and binds on US companies and anyone using the US dollar clearing system. The European system is run under EU law and binds on European companies and banks, regardless of what the US allows. On 22 June, OFAC issued General License X allowing Iranian crude to be bought, sold, and shipped. This was part of the ongoing US-Iran diplomatic process {{EVREF:/t/iran-conflict-2026/136/the-paper-says-open-water-says-shut/}}. Asian refineries in China, India, and South Korea, which are not subject to EU law, can now legally purchase Iranian crude at a significant discount to market prices. However, European refineries in the Netherlands, Germany, Italy, and France are still banned from buying Iranian crude under EU Regulation 833/2014 and UK sanctions. These European rules apply regardless of what the US allows. So when Brent crude fell to $73, that price move was the market pricing in more supply from Iran. But European refiners cannot buy any of it. For them, diesel and heating oil remain exactly as scarce as they were before GL X was issued. The ICE Gasoil future, the European diesel benchmark, stayed elevated relative to the lower Brent price precisely because European buyers are excluded from the supply relief.