The U.S. Sanctions Several Companies and Ships for Involvement in Iranian Oil and Gas Sales

The Office of Foreign Assets Control of the U.S. Department of the Treasury announced sanctions against more than 10 entities and ships for transporting crude oil and gas from Iran. According to a statement released on Wednesday, September 25, Washington imposed sanctions on over 10 entities and ships due to their role in transporting Iranian crude oil and liquefied gas to Syria and East Asia, and their cooperation with the Islamic Revolutionary Guard Corps (IRGC), the Quds Force of the IRGC, and Hezbollah in Lebanon. The statement emphasizes that due to the sanctions imposed against Tehran, the transfer of Iranian oil and gas is considered 'illegal' and amounts to 'smuggling.' Following Donald Trump's withdrawal from the JCPOA in 2018 and the re-imposition of oil and banking sanctions against Iran, Iran's oil revenues have significantly decreased, and the country's economic growth has been negative in recent years. The statement mentions that four ships linked to Abdul Jalil Malah, from one of Syria's major shipping lines, are among those sanctioned. Abdul Jalil Malah was previously sanctioned by the U.S. in 2021, and his brother was also included in the sanctions list today. The U.S. Treasury Department stated that the Malah brothers have supported the destructive activities of the Islamic Republic and its proxy groups through their shipping empire. Bradley T. Smith, Deputy Assistant Secretary for Terrorism and Financial Intelligence, said in the statement: 'Iran continues to heavily rely on the illegal sale of oil and liquefied gas by the IRGC and Hezbollah to finance its proxy forces and destabilizing activities.' The U.S. Treasury further emphasized its commitment to dismantling the networks of brokers and buyers facilitating this process. Numerous reports have emerged regarding the Islamic Republic and its military entities using international brokers for oil sales and related financial transactions. On June 26 of this year, the U.S. Treasury also sanctioned nearly 50 individuals and entities involved in laundering 'billions of dollars' from Iranian oil exports for the military entities of the Islamic Republic. The only customers for Iranian crude oil and gas condensates are China and Syria, with the UAE also purchasing Iranian fuel oil (mazut). Iran also exports liquefied gas (propane and butane) to China. Tracking companies' statistics indicate that Iran exported over 1.5 million barrels of crude oil, gas condensates, and fuel oil daily last year, which, considering global oil prices, should have generated at least $46 billion in revenue for Iran. However, customs statistics show that Iran only had $36 billion in oil revenue last year, indicating that nearly one-fifth of oil revenues were lost to brokers or discounts given to Chinese refineries.