The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed new sanctions on vessels and companies involved in transporting Iranian oil, as part of efforts to increase economic pressure on Iran. The action comes amid reports of the Iranian government’s suppression of peaceful protests and restrictions on internet access.
According to the Treasury, nine vessels and their owners or management firms have moved hundreds of millions of dollars’ worth of Iranian oil and petroleum products to international markets. The agency asserts that revenue from these shipments is being diverted away from public services for Iranians, instead funding regional proxy groups, weapons programs, and internal security forces.
“The Iranian regime is engaged in a ritual of economic self-immolation—a process that has been accelerated by President Trump’s maximum pressure campaign. Tehran’s decision to support terrorists over its own people has caused Iran's currency and living conditions to be in free fall,” said Secretary of the Treasury Scott Bessent. “Today’s sanctions target a critical component of how Iran generates the funds used to repress its own people. As previously outlined, Treasury will continue to track the tens of millions of dollars that the regime has stolen and is desperately attempting to wire to banks outside of Iran."
The latest sanctions are issued under Executive Order 13902, which targets activities in Iran’s petroleum and petrochemical sectors. This move aligns with National Security Presidential Memorandum 2 (NSPM-2), reinforcing a policy aimed at exerting maximum economic pressure on Iran.
The targeted vessels include ships flagged in Palau, Comoros, Panama, as well as some registered with unknown or Marshall Islands flags. They have transported crude oil, liquified petroleum gas (LPG), methanol, naphtha, high sulfur fuel oil, and other petroleum products primarily to East Asia, South Asia, Djibouti, Somalia, Pakistan, Bangladesh, and other locations since at least 2020.
Companies designated for operating in Iran’s petroleum sector include Horizon Harvest Shipping LLC; Aayat Ship Management Private Limited; Black Stone Oil and Gas; Galeran Service Corp; Longevity Shipping Limited; Odyssey Marine Inc.; Benoil Shipping Inc.; and Trade Bridge Global Inc.
As a result of these designations, all property within U.S. jurisdiction belonging to these entities or individuals is blocked. U.S. persons are generally prohibited from conducting transactions involving these parties unless authorized by OFAC. Entities owned 50 percent or more by one or more blocked persons are also subject to these restrictions.
Violations may lead to civil or criminal penalties for both U.S. and foreign individuals or organizations involved in prohibited dealings with sanctioned parties. OFAC notes that financial institutions risk exposure if they engage with designated entities or facilitate related transactions.
OFAC emphasizes that its authority includes not only imposing but also removing sanctions where appropriate: “The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.” Guidance for removal from sanction lists is available through OFAC resources.
More information regarding today’s actions can be found on the Treasury Department website.
