The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has announced sanctions on nearly two dozen firms involved in Iran's international oil trade. These companies operate across multiple jurisdictions and are implicated in funding Iran’s military and terrorist activities.
According to the Treasury, the Iranian government allocates substantial oil revenues to its armed forces, supporting ballistic missile development and regional terrorist groups. "Today’s action underscores our continued focus on intensifying pressure on every aspect of Iran’s oil trade," stated Secretary of the Treasury Scott Bessent.
The sanctions are executed under Executive Order 13224, as amended by E.O. 13886, which targets entities supporting terrorism or proliferation of weapons. The move aligns with National Security Presidential Memorandum-2, aimed at imposing maximum economic pressure on Iran.
Sepehr Energy Jahan Nama Pars Company (Sepehr Energy), a key player in this network, was previously designated for aiding Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL). Sepehr Energy is known for using front companies to disguise the origin of Iranian oil.
These front companies include Hong Kong-based Xin Rui Ji Trad Co., Limited; Star Energy International Limited; and Milen Trading Co., Limited. They facilitate shipments to independent refineries in China while maintaining financial ties with Sepehr Energy officials like Elyas Nirumand Toomaj.
The OFAC also identified several China-based buyers and facilitators who assist in concealing the origins of Iranian oil through ship-to-ship transfers and document falsification. Notably, CCIC Singapore PTE Ltd provided inspection services that masked these transactions as legitimate.
Qingdao Linkrich International Shipping Agency Co., Ltd is among those designated for aiding Sepehr Energy-chartered vessels at Chinese ports. Other companies acted as intermediaries between Sepehr Energy and small refineries in Shandong province.
Iranian AFGS relies on a "shadow fleet" of aging tankers for transporting oil overseas. Companies such as Nanhai Limited have been instrumental in facilitating these shipments to China.
As a result of these designations, all property within U.S jurisdiction linked to these entities is blocked. Transactions involving these entities are prohibited unless authorized by OFAC.
Violations could lead to civil or criminal penalties under U.S sanctions laws. Financial institutions engaging with designated entities risk exposure to secondary sanctions under E.O 13224.
OFAC emphasizes that its sanctions aim not just at punishment but encouraging positive behavioral changes among sanctioned parties.
