The United States has intensified its sanctions against Iran, targeting 35 entities and vessels involved in the illicit transportation of Iranian oil. This move, announced on Tuesday by the US Treasury Department, builds upon previous sanctions and is a response to Iran's missile attack on Israel and escalating nuclear activities.

These US sanctions target entities and vessels from the UAE, China, Liberia, Hong Kong, and other countries. US authorities describe Iran’s maritime operations as part of a "shadow fleet," a network facilitating the illegal export of oil. This includes the diversion of 500,000 to 750,000 metric tons of fuel oil monthly from Iraqi plants primarily benefiting Iran and its regional proxies. The illicit trade reportedly earns Iran between $1 billion to $3 billion each year. Much of the fuel oil is routed through Iraq under the guise of subsidized asphalt production, with some mixed with Iranian oil to circumvent sanctions.

The US government contends that Iran uses the revenue from its oil sales to fund its nuclear program, develop advanced weapons, and support its regional proxies. By targeting the entities involved in the transportation of Iranian oil, the US aims to reduce Iran's ability to generate these funds.

List of Entities Sanctioned:

United Arab Emirates (UAE)

• Galileos Marine Services L.L.C: Manages the JAYA, a vessel involved in transporting Iranian oil.

India

• Vision Ship Management LLP: Manages and operates vessels involved in transporting Iranian oil, including the PHONIX, RIO NAPO, and LARA II.

• Tightship Shipping Management (OPC) Private Limited: Manages and operates vessels involved in transporting Iranian oil, including the OLIVE, BLACK PANTHER, LIONESS, and TONIL.

China

• Shanghai Legendary Ship Management Company Limited: Manages and operates the BERTHA, MIN HANG, and VESNA, involved in transporting Iranian oil.

• Shanghai Future Ship Management Co Ltd: Manages and operates the VERONICA III and MEROPE, involved in transporting Iranian oil.

• Eunomia Limited: Owns the FIONA II, involved in transporting Iranian oil.

• Yurimaguas Ltd: Owns the YURI and VANITY, involved in transporting Iranian oil.

• Ceres Shipping Limited: Owns the CERES I, involved in transporting Iranian oil and a recent oil spill.

Other Countries

•              Panama: Ocean Glory Giant OGG SA owns and manages the MASAL, involved in transporting Iranian oil.

•              Hong Kong: Gaffodil Co., Limited manages and operates the FT ISLAND, involved in transporting Iranian oil.

•              Cook Islands: Vision Ship Management LLP owns and manages the RIO NAPO.

•              Seychelles: Lufindo Holding Limited owns the ELVA, involved in transporting Iranian oil.

•              Pakistan: Inaya Ship Management Private Limited manages the ELVA.

•              Liberia: Constellation Maritime Services Limited owns and operates the LADY LUCY, involved in transporting Iranian oil.

•              Marshall Islands: Yurimaguas Ltd owns the YURI and VANITY.

•              Ukraine: Lightship Management Ltd manages the TONIL.

The U.S. government has frozen all assets and property of these entities and individuals within the U.S. or under U.S. control. Additionally, any entities owned 50% or more by these designated persons are also subject to these restrictions.

Unless specifically authorized by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC), U.S. persons are prohibited from engaging in any financial transactions or business dealings with the designated entities or individuals. Any violation of these sanctions could result in severe civil or criminal penalties.

Bradley T. Smith, Acting Under Secretary for Terrorism and Financial Intelligence, emphasized the US commitment to using all tools to dismantle the network. “Iran continues to funnel revenues from its petroleum trade toward the development of its nuclear program, proliferation of its ballistic missile and unmanned aerial vehicle technology, and sponsorship of its regional terrorist proxies, risking further destabilizing the region,” he said in a statement.

Iran has been under severe US sanctions for years, which have significantly curtailed its oil exports. The latest sanctions further tighten the noose on Iran's economy, making it increasingly difficult for the country to sell its oil and generate revenue.

The sanctions highlight the deepening international concern over Iran’s oil trade and smuggling operations as these activities have flourished in Iraq since Prime Minister Mohammed Shia al-Sudani took office in 2022. Though Iraq remains a key ally to both Washington and Tehran, its role in facilitating smuggling operations, including blending Iranian fuel with local oil, puts Iraqi officials at risk of US sanctions.

This ongoing issue remains under scrutiny, with the US pledging to continue targeting the smuggling routes that fund Iran's controversial regional activities.