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Iran Conflict 2026
9MAY

Treasury defaults Iran licences to no

2 min read
17:21UTC

OFAC adopted a presumption of denial for Iran-specific licence applications on 10 September, and Treasury's Licensing Division began refusing most outstanding requests at once.

ConflictAssessed
Key takeaway

Refusal became the starting point for every Iran licence request that is not legally compelled.

The Office of Foreign Assets Control (OFAC) adopted a presumption of denial for Iran-specific licence applications on Thursday 10 September, and Treasury said its Licensing Division began refusing most outstanding requests immediately⁠1. Two exceptions survive: approvals the law compels, and cases touching safety, meaning life, limb or environmental harm⁠2.

A licence application is how anyone with a lawful reason to touch a sanctioned economy asks permission. A family sending a remittance to a relative in Tehran files one. So does a hospital importing a component, a university paying a conference fee, and an operator seeking a certified aircraft safety part. Until Thursday each of those was assessed on its merits, and Treasury carried the argument for refusing. Now the applicant carries the argument for approval, and must show its transaction fits one of two narrow exceptions.

The change completes a sequence that began on Monday 24 August with the indefinite stay of five Iran general licences, whose wind-down expired on 8 September. Removing those licences pushed every affected transaction into the application queue. The 10 September policy sets the default answer in that queue to no. Taken together, the two steps mean a remittance, a conference fee and a spare part now travel the same route and meet the same presumption.

This is also the most durable of the week's American actions, and the least visible. It carries no expiry date, it was published in a paragraph, and it inverts the default of a whole country programme without amending a statute. A designation names a target that can contest it. A presumption names nobody, so nobody has standing to challenge it, and the humanitarian carve-outs that survive are the ones the law forces Treasury to keep.

Deep Analysis

In plain English

OFAC is the part of the US Treasury that decides which transactions with sanctioned countries are allowed. Businesses and individuals can normally apply for a licence, a specific permission, to do something otherwise banned. From 10 September, OFAC changed its default answer to almost all new Iran-related licence requests from 'maybe, we'll look at it' to 'no, unless the law requires us to say yes or someone's safety is at risk'. Treasury said it began denying most outstanding requests immediately. An Iranian-American advocacy group, the National Iranian American Council, had already written to two senior US officials asking them not to take this kind of step, arguing that some of the exemptions being removed exist to stop ordinary Iranians and Iranian-Americans from being caught up in sanctions meant for the government.

Deep Analysis
Root Causes

Treasury set the presumption of denial under its existing authority, without further legislation, which is why the shift took effect on 10 September through a single announcement rather than a rulemaking process with a comment period.

The policy also removes a procedural burden from OFAC's own staff: under case-by-case review, each denial requires an individual justification; under a presumption of denial, staff need only justify the exceptions, inverting which decisions carry an administrative cost.

What could happen next?
  • Consequence

    Applicants with requests already pending when the presumption of denial took effect on 10 September had their cases shifted to a default of denial without a transition period, unlike the multi-year unwind that followed the 2018 JCPOA withdrawal.

First Reported In

Update #177 · 23 to 3: Iran goes to the Security Council

US Department of the Treasury· 11 Sept 2026
Read original →
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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.