Washington steps up pressure on Iran’s oil exports
The Donald Trump-led US administration has sanctioned several vessels, a Chinese refinery and three port terminal operators in China's Shandong province for dealing with sanctioned Iranian oil.
IMAGE: Flags of the US and Iran. Getty Images
Washington has accused China-based Hebei Xinhai Chemical Group of purchasing most of Tehran’s crude oil exports and “facilitating the delivery of hundreds of millions of dollars’ worth of Iranian oil.”
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on several companies, vessels and captains “responsible for facilitating Iranian oil shipments."
“This is OFAC’s third action against a teapot refinery and its first targeting terminal operators in Shandong Province,” it said.
OFAC has sanctioned the Panama-flagged Star Twinkle 6, and five more vessels along with their operators, for shipping Iranian petroleum to China and to the Persian Gulf, it said. These vessels are allegedly part of Iran’s shadow fleet.
The US administration has also targeted three firms for operating a port terminal in Dongying Port in China, “which has received several shipments of Iranian oil from shadow fleet vessels since 2024.”
The move reinforces Washington’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 edged higher after the announcement, according to market analysts.
“Iran’s shadow fleet relies on obscure ship management companies to manage its fleet of tankers that Tehran needs to mask Iran’s petroleum shipments to China using ship-to-ship (STS) transfers with sanctioned vessels,” OFAC added.
A shadow fleet consists of older and environmentally hazardous vessels that intentionally evade regulations.
By assembling a 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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