Presidential Determination Pursuant to Section 1245(d)(4)(B) and (C) of the National Defense Authorization Act for Fiscal Year 2012

This determination extends a sanctions exemption by certifying that global petroleum supplies are sufficient to allow countries to significantly reduce Iranian oil purchases without harming markets. It maintains existing policy by continuing to waive secondary sanctions on foreign financial institutions that process Iranian oil transactions.

Federal Register Open PDF 88 FR 8347

Impact dates

Jul 29, 2023
Next required determination under NDAA Section 1245(d)(4)(B) and (C) — periodic renewal required every 180 days

Key directives

Determine that global petroleum supply is sufficient to permit significant reduction in Iranian oil purchases
Continue monitoring global petroleum market conditions
Secretary of State to publish determination in Federal Register

Who is ordered

Timeline

Immediate

Determination takes effect upon signing, maintaining sanctions waiver

Near term (90d)

Continued monitoring of global petroleum supply conditions
Foreign financial institutions remain exempt from secondary sanctions for Iranian oil transactions

Long term

Ongoing sanctions architecture against Iran remains in place with periodic presidential determinations required

Risks & tensions

Statutory mechanism requires repeated presidential determinations; failure to renew would trigger sanctions on foreign banks
Determination depends on volatile factors: spare capacity, strategic reserves, global economic conditions
Vague 'continue to monitor' language provides flexibility but no binding contingency plan if conditions change
Maintains status quo rather than altering policy; tension between sanctions pressure and market stability