US Imposes Sanctions on 35 Entities Linked to Iranian Oil Trade
The U.S. government announced today that it has imposed sanctions on 35 entities and vessels involved in the illegal transport of Iranian oil. This move aims to impose additional financial burdens on Iran's oil sector, a significant source of revenue for the country, due to its controversial nuclear program, advanced weapons development efforts, and support for regional terrorism.
The sanctions follow Iran's attack on Israel on October 1, 2024, and the subsequent nuclear escalation by Iran. These measures add to the previous sanctions imposed on October 11, 2024. Acting Deputy Assistant Secretary for Terrorism and Financial Intelligence, Bradley T. Smith, stated, "The U.S. will continue to resolutely use all tools and authorities to obstruct shadow fleet vessels and operators facilitating these illegal activities."
The sanctions are enforced under Executive Order 13902, which authorizes the Secretary of the Treasury, in consultation with the Secretary of State, to target key sectors of the Iranian economy. The Office of Foreign Assets Control (OFAC) has also published guidance to assist in identifying and preventing evasion of sanctions in the maritime sector.
Among the sanctioned entities is a network of tankers and ship management firms that employ deceptive practices such as manipulating vessel tracking systems, changing ship names, and using false documentation, spread across multiple jurisdictions. The listed vessels include the Marshall Islands-flagged JAYA, the Guyana-flagged PHONIX, and the Cook Islands-flagged BERTHA, among others.
Several companies managing these vessels are also designated under the executive order. These include UAE-based Galileos Marine Services L.L.C, Panama-based Ocean Glory Giant OGG SA, and India-based Vision Ship Management LLP, among others. These firms are accused of managing vessels carrying Iranian oil while evading sanctions in various ways.
The sanctions result in the blocking of these entities' assets within the U.S. and prohibit all transactions related to these entities by U.S. citizens or individuals within the U.S. The enforcement of these sanctions may also lead to penalties for U.S. citizens who violate them or for non-U.S. citizens attempting to provoke U.S. citizens into engaging in sanctionable activities.
OFAC emphasizes that the purpose of these sanctions is not punitive but aimed at encouraging behavioral change. The agency also outlines the process for entities wishing to be removed from the sanctions list; this process is contingent upon demonstrating a change in behavior consistent with U.S. laws and policies.