The U.S. Treasury Department on Thursday imposed sanctions on a network of ship owners, managers, and front companies facilitating Iranian oil sales to buyers across Asia, targeting what officials call Iran's "shadow fleet"—the vessels and intermediaries Tehran uses to evade international restrictions.
The targeted entities operate under flags of convenience and employ tactics including ship-to-ship transfers and disabled tracking systems to obscure crude shipments. The network has allowed Iran to maintain oil exports despite existing U.S. sanctions, generating billions in revenue, according to Treasury officials.
Brian Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence, said the action freezes any U.S.-based assets of the designated entities and generally prohibits U.S. persons from engaging in transactions with them.
The move builds on efforts to curb Iran's oil exports since President Trump withdrew from the Iran nuclear deal in 2018. The Treasury Department has previously targeted the National Iranian Oil Company and its subsidiaries, as well as foreign buyers and facilitators of Iranian crude.
The sanctions force Tehran to find costlier and less efficient export routes, cutting revenue that funds proxy groups and the nuclear program. While the immediate impact on global oil prices is expected to be minimal, the action signals continued U.S. enforcement pressure and puts countries indirectly facilitating these shipments at risk of secondary sanctions.
The Treasury Department said it will continue monitoring shipping lanes for new entities that emerge to replace the sanctioned network.
