United States Sanctions 35 Entities and Vessels for Iran Oil Smuggling

The U.S. Treasury Department has imposed new sanctions on 35 entities and vessels for their involvement in smuggling Iranian oil to foreign markets. In a statement on Tuesday, December 3, the Treasury described this action as part of increasing pressure on the Islamic Republic's 'shadow fleet.' The term 'shadow fleet' refers to a network of oil tankers and shipping companies that illegally transport Iranian oil in violation of Western sanctions and deliver it to foreign customers. According to the U.S. Treasury, tactics used by the Iranian oil smuggling network include document forgery, manipulation of ship tracking systems, and constant changes to the names and flags of vessels. The statement highlighted Iran's attack on Israel on September 30 of this year and reports of increased nuclear activities by the Iranian government, emphasizing that the new U.S. sanctions will impose additional costs on Iran's oil sector. The Treasury noted that the Islamic Republic uses oil revenues to advance its nuclear program, enhance missiles and advanced drones, and fund the terrorist activities of its proxy groups in the region. Bradley Smith, the acting deputy secretary of the Treasury for terrorism and financial intelligence, emphasized America's commitment to disrupting the operations of the shadow fleet and its facilitators. Tankers flying flags from countries such as Iran, Honduras, Liberia, the Marshall Islands, Guyana, the Cook Islands, São Tomé and Príncipe, and San Marino, along with a list of shipping companies based or registered in countries like the UAE, Panama, India, China, and Hong Kong, are included in the new sanctions list. In recent years, the U.S. has repeatedly imposed sanctions on individuals and entities associated with the Islamic Republic of Iran as well as several other countries, including Syria, Lebanon, and Yemen. In this context, the Office of Foreign Assets Control (OFAC) of the U.S. Treasury imposed sanctions on November 15 against 26 individuals, entities, and vessels linked to the Syrian company 'Al-Qatargy,' a financial supplier for the Quds Force of the Islamic Revolutionary Guard Corps and the Houthis in Yemen. The Treasury noted that 'Al-Qatargy' has generated hundreds of millions of dollars in revenue for the Quds Force and the Houthis through the sale of Iranian oil to Syria and China. According to the statement, 'Al-Qatargy,' which had previously been sanctioned by the U.S. for facilitating oil sales between the Assad government and the terrorist group ISIS in Iraq and Syria, has become 'one of the main channels' for generating revenue for the Quds Force and its proxy groups in the region. In this regard, Bradley Smith stated that '[the Iranian government] increasingly relies on key business partners like Al-Qatargy to fund its destabilizing activities and terrorist networks in the region.' He emphasized that the U.S. will continue to take all possible actions to limit the Islamic Republic's ability to benefit from illegal schemes that facilitate this government's dangerous policies in the region. In recent years, the European Union, the UK, and Australia have imposed sanctions on the Islamic Republic of Iran. New U.S. sanctions against Hezbollah financing networks in Lebanon and the Syrian government. Australia sanctioned several officials of the Iranian missile program. European and Israeli officials welcomed the EU's sanctions against the Islamic Republic of Iran. The U.S. has sanctioned arms supply networks for the Houthis. The U.S. has sanctioned several companies and vessels for their involvement in the transfer of Iranian oil and gas.