Washington tightens sanctions on Iranian oil
The Donald Trump-led US administration has hit Iran with oil sanctions for the sixth consecutive time.
IMAGE: Flags of Iran and the US. Getty Images
The US administration has imposed strict sanctions on Chinese refinery Shandong Shengxing Chemical for purchasing “more than a billion dollars’ worth of Iranian crude oil.”
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has also sanctioned several companies and vessels responsible for facilitating Iranian oil shipments to China, which are a part of Iran’s shadow fleet.
Shandong Shengxing Chemical received dozens of Iranian crude oil shipments from shadow fleet vessels, including the newly sanctioned
NYANTARA, RESTON, and the BRAVA LAKE, OFAC said.
“This also marks the sixth round of sanctions targeting Iranian oil sales since the President [Donald Trump] issued National Security Presidential Memorandum 2 (NSPM-2), instituting a campaign of maximum economic pressure on Iran,” the treasury department noted.
The US treasury department has also sanctioned four more vessels and their owners for conducting high-risk ship-to-ship (STS) transfers of Iranian petroleum shipments to China, with previously sanctioned shadow fleet tankers.
This move has reaffirmed the US government’s stance on tighter sanctions against Iran as it continues with its efforts to drive the OPEC-member’s oil exports down to zero. Brent’s price moved higher following the announcement, market analysts noted.
A fresh batch of US sanctions against Iranian oil was a “seemingly bullish indicator” for the oil market, VANDA Insights’ founder and analyst Vandana Hari noted.
Additionally, the US could move to block Iranian oil exports if it intensifies efforts to stop Tehran from obtaining nuclear weapons.
A shadow fleet, or a ‘dark 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, the country has effectively generated thousands of dollars in revenues to support regional armed groups, including the Yemen-based Houthi and the Lebanon-based Hezbollah.
By Aparupa Mazumder
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