Will Iran Deal Reconfigure Regional Products Flows?

3 Jul 2026 Issue: 69 / 27

For years, Iran used hubs in the UAE to facilitate its clandestine oil trade, with as much as 79% of its products exports last year passing through its terminals. If sanctions waivers are formalized, will legitimate Iranian barrels bypass the UAE?

The signing of the US-Iran Memorandum of Understanding (MoU) on 17 June has led to widespread speculation over whether and when oil flows through the Strait of Hormuz will return to pre-conflict levels (MEES, 3 July). However, less attention has been paid on how the easing of US sanctions on Iranian oil exports could reshape regional products trade and the impact that would have on business at the UAE’s storage and blending hubs.

Under the US Treasury’s General License X, Iran has been granted a 60-day sanctions relief that allows for the production, delivery, and export of petroleum (including refined products). This will see the Iranian market more ‘open’ than at any time since the US exited the Iran nuclear deal known as the JCPOA in 2018 during President Donald Trump’s first term. (CONTINUED - 891 WORDS)