Iran’s ‘Dark’ Fleet Hit With New Sanctions
The United States imposed a new round of sanctions on Iran’s oil industry on Monday, targeting more than 30 brokers, tanker operators, and shipping companies for their roles in the sale and transportation of Iranian oil, the Treasury Department said.
It comes as President Donald Trump seeks to cut Iran’s crude exports to zero to prevent the country from obtaining nuclear weapons, a move that would entrench layers of sanctions already imposed by him and previous Biden administrations.
“Iran continues to rely on a network of shadowy vessels, carriers, and middlemen to facilitate its oil sales and finance its destabilizing activities,” Treasury Secretary Scott Besant said in a statement.
“The United States will use every tool at its disposal to attack every link in Iran’s oil supply chain, and anyone who trades with Iranian oil faces significant sanctions risk,” he added.
The Treasury Department said the new sanctions target oil brokers in the UAE and Hong Kong, tanker operators and managers in India and China, and the heads of the National Iranian Oil Company and the Iranian Oil Terminal Company.
According to Iran’s Ministry of Finance, the Iranian Oil Terminal Company oversees all operations at Iran’s oil terminals, including the Kharg Island oil terminal, through which most of Iran’s oil is shipped, and the South Pars condensate terminal, through which 100% of Iran’s gas condensate exports are shipped.
Earlier this month, Trump renewed his “maximum pressure campaign” against Iran, including efforts to reduce Iran’s oil exports to zero and restore Washington’s tough Iran policy that was pursued during Trump’s first term.
Oil is one of Iran’s main sources of revenue, and targeting the country’s exports is intended to cut off the government’s funding for its nuclear and missile programs. The action generally prohibits any U.S. person or entity from transacting with those targets and freezes any U.S.-held assets.
Trump has accused his predecessor, President Joe Biden, of failing to enforce oil export sanctions strictly.
Despite U.S. sanctions, Tehran’s oil exports are expected to generate $53 billion in revenue in 2023, compared with $54 billion the year before, according to estimates from the U.S. Energy Information Administration.
According to OPEC, production in 2024 will be the highest since 2018. Trump cut Iran’s oil exports to near zero during his first term after he reimposed sanctions, but they have rebounded since Biden took office as Iran was able to evade them.
It is unclear whether Trump’s move will lead to another sharp drop in Iranian exports.
China, which does not recognize U.S. sanctions, buys most of Iran’s oil. China and Iran have set up a trading system that uses mainly the yuan and a network of middlemen, avoiding the risk of the dollar and U.S. regulators.
The Paris-based International Energy Agency believes Saudi Arabia, the United Arab Emirates, and other OPEC members have spare capacity to make up for the loss of exports from Iran, which is also an OPEC member.
