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US Sanctions Iran's "Shadow Fleet" to Cut Off Regime's Oil Revenue

The United States has imposed new sanctions on a network of entities and vessels described as Iran's "shadow fleet" for transporting Iranian petroleum products. Treasury officials state the action aims to sever a key revenue stream funding the regime's repression of its people and support for destabilizing foreign activities. The sanctions come amid widespread Iranian protests over economic mismanagement, inflation, and infrastructure failures. All designated property under US jurisdiction is now frozen, and transactions with these blocked parties are prohibited.

Key Points: US Sanctions Iran's Shadow Fleet Over Oil Revenue

  • New sanctions on 8 entities & 9 vessels
  • Targets Iranian oil & gas shipping revenue
  • Aims to cut funds for repression & proxies
  • Follows widespread protests in Iran
3 min read

US targets Iran's shadow fleet with new sanctions

US targets Iranian oil shipping network with new sanctions, aiming to cut funds for repression and foreign proxies amid domestic protests.

"The Iranian regime is engaged in a ritual of economic self-immolation - Scott Bessent"

Washington, Jan 23

The United States on Friday announced a new round of sanctions targeting what it described as Iran's "shadow fleet," as Washington moved to further restrict revenue streams it says are being used to repress the Iranian people and finance destabilising activities abroad.

The Treasury imposed sanctions on eight entities and nine vessels involved in transporting Iranian petroleum and petroleum products, including liquefied petroleum gas.

Treasury Secretary Scott Bessent said the measures are aimed at cutting off a key source of funding for repression. "The Iranian regime is engaged in a ritual of economic self-immolation-a process that has been accelerated by President Trump's maximum pressure campaign," Bessent said.

"Tehran's decision to support terrorists over its own people has caused Iran's currency and living conditions to be in free fall," he added. "Today's sanctions target a critical component of how Iran generates the funds used to repress its own people."

The Office of Foreign Assets Control said the vessels have carried Iranian crude oil, LPG, fuel oil, naphtha, condensate, and methanol to destinations including East Asia, Pakistan, Bangladesh, Somalia, Djibouti, and the United Arab Emirates over recent years.

Among the vessels identified are SEA BIRD, AVON, AL DIAB II, CESARIA, LONGEVITY 7, EASTERN HERO, AQUA SPIRIT, CHIRON 5, and KEEL. The designated companies include shipping and management firms based in jurisdictions ranging from the United Arab Emirates and India to Oman, the Marshall Islands, Liberia, and Seychelles.

"These entities have shipped hundreds of millions of dollars' worth of Iranian petroleum and petroleum products, including liquefied petroleum gas (LPG), helping finance the regime and its security forces," said Principal Deputy Spokesperson Tommy Pigott.

The action comes amid widespread protests in Iran over economic conditions and governance. Pigott said that while "the Iranian people protest the Iranian regime's catastrophic economic mismanagement," the government continues to fund "foreign proxies and missiles over the basic needs of Iranians."

He pointed to "massive inflation, crumbling infrastructure, and water and electricity shortages" as signs that "Iranians are not seeing their wealth put to good use," adding that "the Iranian regime refuses to put Iranians first."

The sanctions target vessels and companies that have collectively transported hundreds of millions of dollars' worth of Iranian oil and petroleum products to foreign markets, the Department of the Treasury said.

As a result of the designations, all property and interests in property of the blocked persons within US jurisdiction are frozen and must be reported to OFAC. US persons are generally prohibited from engaging in transactions involving the designated entities and vessels without authorisation.

Treasury warned that violations of US sanctions may result in civil or criminal penalties and that foreign persons and financial institutions may also face exposure for engaging in certain transactions involving blocked parties.

- IANS

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Reader Comments

P
Priya S
Interesting to see India mentioned as a base for one of the companies. Our government needs to be very careful with these sanctions. We have our own energy needs and good relations with many nations, but we can't afford to be on the wrong side of US financial systems. Tough balancing act. 🤔
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Aman W
The US is right to target the money. If the regime is funding proxies and militias abroad while their own people suffer from water shortages, that's the real issue. The Iranian people are brave for protesting. Hope they find peace and stability.
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Sarah B
From a global stability perspective, cutting off funds for destabilizing activities is crucial. But the humanitarian cost is always worrying. The article mentions Pakistan and Bangladesh as destinations—this shows how interconnected and complex these oil networks are in our region.
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Vikram M
Maximum pressure campaign? Sounds familiar. These sanctions might boost oil prices globally, which hits developing economies like ours the hardest. We pay more for petrol. The geopolitical game has direct consequences for the common man's pocket. 🛢️
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Karthik V
Respectfully, the US framing is one-sided. They call it a "shadow fleet," but for many countries, it's just trade. Not every nation agrees with unilateral sanctions. The world isn't black and white. India should pursue its national interest independently.

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