Washington increases pressure on Iranian oil
The US government has sanctioned oil companies and associated networks, as well as several vessels for allegedly transporting and purchasing sanctioned Iranian oil.
IMAGE: US Department of Treasury. Getty Images
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on several vessels that have covertly facilitated transport of sanctioned Iranian oil on behalf of Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).
“Iran relies on non-sanctioned vessels to conduct ship-to-ship transfers and receive Iranian oil from sanctioned vessels before shipping the Iranian-origin cargo to buyers in Asia,” the treasury department has claimed.
OFAC has sanctioned the Cameroon-flagged VIZURI, Comoros-flagged FOTIS and Panama-flagged THEMIS as well as four more vessels along with their registered operators, collectively shipping “tens of millions of barrels of Iranian oil and other petroleum worth billions of dollars.” These vessels are allegedly part of Iran’s shadow fleet.
VIZURI has completed multiple Iranian oil shipments since mid-2023, while FOTIS has transported Iranian LPG and other petroleum products, OFAC said. THEMIS, which was previously sanctioned by the UK on 9 May for transporting Russian oil, has also transported Iranian oil, the US agency added.
The treasury department has also targeted Singapore-based Trans Arctic Global for providing pilot services to vessels owned by Iran’s state-run National Iranian Tanker Company (NITC). These services were offered as the tankers transited the Strait of Malacca, en route to conduct ship-to-ship transfers with other vessels anchored at the Singapore Eastern Outer Port Limits.
OFAC has further sanctioned a network of companies run by Iraqi businessman Salim Ahmed Said, that has profited from smuggling Iranian oil disguised as, or blended with Iraqi oil, it said.
“Said’s companies and vessels blend Iranian oil with Iraqi oil, which is then sold to Western buyers via Iraq or the United Arab Emirates (UAE) as purely Iraqi oil using forged documentation to avoid sanctions. This allows the oil to be sold on the legitimate market and helps Iran evade international sanctions on its oil exports,” the US treasury department said.
The move reinforces the Donald Trump-led US administration’s commitment to tightening sanctions on Iran as it pushes to bring the OPEC member’s oil exports down to zero. The price of front-month ICE Brent found some support after the announcement, according to market analysts.
Separately, the US Department of State has issued sanctions on several companies and four shadow fleet vessels and their owners “engaged in the sale and transport of Iranian petroleum, petroleum products, and petrochemical products,” it said in a statement.
By assembling a shadow fleet of poorly maintained vessels to circumvent sanctions meant to restrict the movement of Iranian crude oil, Tehran has effectively generated thousands of dollars in revenue to support regional armed groups, including the Yemen-based Houthi and the Lebanon-based Hezbollah, according to OFAC.
By Aparupa Mazumder
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