Scott Bessent (Right), Treasury Secretary | https://www.facebook.com/photo
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has announced new sanctions targeting entities involved in Iran's oil exports. This move designates a "teapot" oil refinery and its CEO for purchasing and refining significant amounts of Iranian crude oil. These transactions involve vessels linked to the Foreign Terrorist Organization, Ansarallah, known as the Houthis, and the Iranian Ministry of Defense Armed Forces Logistics (MODAFL).
Secretary of the Treasury Scott Bessent stated, "Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror." He emphasized that "the United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program."
In addition to these actions, OFAC is imposing sanctions on 19 entities and vessels responsible for transporting millions of barrels of Iranian oil. These measures are part of Executive Order (E.O.) 13902, which targets Iran's petroleum sector. This marks the fourth round of sanctions since National Security Presidential Memorandum 2 was issued on February 4, 2025.
The Department of State is also designating an entity under E.O. 13846 for engaging in significant transactions involving Iranian petroleum products.
Shandong Shouguang Luqing Petrochemical Co., Ltd (Luqing Petrochemical), a teapot refinery in Shandong Province, has been identified as purchasing large quantities of Iranian oil worth approximately half a billion dollars. The company received this oil through shadow fleet vessels sanctioned for their roles in transporting petroleum linked to MODAFL and other groups.
Several vessels have been sanctioned today as part of this shadow fleet. Among them are NATALINA 7, CATALINA 7, AURORA RILEY, VIOLA, MONTROSE, VOLANS, BRAVA LAKE, and TITAN. These ships engage in deceptive shipping practices such as automatic identification system manipulation.
Various companies associated with these vessels are being designated under E.O. 13902 for operating within Iran's petroleum sector. These include Astrid Menks Limited, Canes Venatici Limited, Placencia Services Incorporation, Citywallship Management Co Ltd., Jetee Co., Limited, Britney Ryder Limited, Seapalm Shipping Limited, Sea Breeze Shipping Inc., Lyrari Group Ltd., Setasean Ship Management Limited, and Zenith Bridge Inc.
As a result of these actions by OFAC, all property and interests in property related to these designated persons within U.S jurisdiction are blocked and must be reported to OFAC. Violations could lead to civil or criminal penalties for both U.S. and foreign individuals or entities involved.
OFAC emphasizes that while its sanctions aim at influencing positive behavioral changes rather than punishment per se; there exists a process for seeking removal from sanction lists like SDN List when compliance with laws is demonstrated.
