The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) and the U.S. Department of State have announced new sanctions on over 30 individuals and vessels involved in the sale and transportation of Iranian petroleum-related products. The sanctions target oil brokers based in the United Arab Emirates (UAE) and Hong Kong, tanker operators in India and China, as well as key figures within Iran's oil industry.
"Iran continues to rely on a shadowy network of vessels, shippers, and brokers to facilitate its oil sales and fund its destabilizing activities," stated Secretary of the Treasury Scott Bessent. "The United States will use all our available tools to target all aspects of Iran’s oil supply chain, and anyone who deals in Iranian oil exposes themselves to significant sanctions risk."
These measures are enacted under Executive Orders 13902 and 13846, focusing on Iran's petroleum sector. This action follows a directive from National Security Presidential Memorandum 2 issued earlier this month aimed at exerting maximum pressure on Iran by reducing its oil exports to zero.
Hamid Bovard, serving as Iran’s Deputy Minister of Petroleum and CEO of the National Iranian Oil Company (NIOC), has been designated for his role in overseeing operations that finance regional destabilization efforts. NIOC is identified for supporting military activities including those by the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).
Additionally, several entities outside Iran are implicated for facilitating crude oil sales abroad. UAE-based Petroquimico FZE and Hong Kong-based Petronix Energy Trading Limited have been involved in purchasing large quantities of Iranian petroleum products. These companies utilized vessels such as CASINOVA, MENG XIN, and PHOENIX I for transporting these goods.
Sanctioned tankers often conduct ship-to-ship transfers beyond jurisdictional limits to obscure their origin before reaching foreign markets. PRC-based Nycity Shipmanagement Co Ltd managed URGANE I which carried multiple shipments to China through such methods.
Furthermore, eight entities from various countries including India, Malaysia, Seychelles, UAE, and others have been designated for engaging in significant transactions involving Iranian petroleum products.
All properties linked to these designated persons within U.S. jurisdiction are now blocked under OFAC regulations. Violations could lead to civil or criminal penalties for both U.S. citizens and foreign nationals engaged with sanctioned entities.
The ultimate aim behind these sanctions is not punitive but rather encouraging positive behavioral changes among those affected by these designations.
