Washington targets Iran’s LPG exports

The US government has taken actions against Iran’s liquefied petroleum gas (LPG) sales, which allegedly enables the Iranian regime to fund its armed forces and proxies.

IMAGE: Getty Images

The US Department of Treasury’s Office of Foreign Assets Control (OFAC) has targeted networks allegedly supporting Iran’s illicit oil and gas industry, including the country's shadow banking and shadow fleet networks, it said.

The US agency has sanctioned vessels responsible for shipping Iranian-origin LPG, disguised as Omani-origin LPG, to end users in South and East Asia, OFAC said.

These networks use front companies in the UAE and China, foreign bank accounts, and Iran’s shadow fleet “to move millions of barrels of Iranian LPG while concealing its Iranian origin and evading U.S. sanctions,” OFAC claimed.

The front companies include UAE-based Butani Trading, Dundlod Trading and ADH Energy, and China-based Shanghai Qianye Energy, OFAC said.

The US treasury department has sanctioned the Palau-flagged LPG tanker MD 23, operated by Marshall Islands-based Limra Gas, for transporting Iranian LPG since 2023.

Another target, the Panama-flagged LPG tanker Glendale owned by Liberia-based Ecoseas Maritime, has transported Iranian LPG since 2020.

The US agency has sanctioned four more vessels and their owners for facilitating similar transactions, it said.

The latest measure forms part of “Economic Fury” – Washington’s campaign to cut Iran’s oil exports to zero, the treasury department said.

By assembling a shadow fleet of poorly maintained vessels to circumvent sanctions meant to restrict the movement of Iranian crude oil, Tehran has generated revenue that has supported regional armed groups, including the Yemen-based Houthis and the Lebanon-based Hezbollah, OFAC claimed earlier.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online