US Requests Panama to Fully Prevent 'Flag of Convenience' Use by Iranian Ships

Abram Pili, the US Special Representative for Iran, announced on Wednesday that the United States has asked Panama to prevent sanctioned Iranian ships from using the Panamanian flag. Pili stated that this request aims to stop these vessels from engaging in illegal activities, such as supporting terrorist groups and selling Iranian oil, thereby increasing pressure on the Islamic Republic and limiting its ability to evade sanctions. In June 2023, the US Treasury Department updated its terrorism list to include 15 Iranian-affiliated oil tankers under secondary sanctions. The Office of Foreign Assets Control (OFAC) of the US Treasury listed the names and details of these 15 tankers flying the Panamanian flag. Panamanian officials also announced that over the past four years, they have revoked the flag from 136 vessels linked to the National Iranian Oil Company. Panama, with over 8,000 ships registered under its flag, has the largest registered fleet in the world and is the largest provider of 'flags of convenience,' allowing ship owners to register their vessels in a country unrelated to them for a fee and without strict oversight. The Islamic Republic has long used 'flags of convenience' as a means to circumvent economic sanctions, which includes renaming Iranian ships and registering them under the flags of other countries. This practice dates back many years; for example, in 2012, The Wall Street Journal reported that Iranian tankers were using the flag of the island nation of Tuvalu to evade sanctions. However, this method is not permanent. With international authorities tracking Iranian vessels, Iran has been forced to frequently change its flag of convenience. CENTCOM reported the destruction of militia weapons; the continuation of Houthi missile attacks in the Red Sea. The Houthis of Yemen confirmed a missile attack on the British tanker 'Pollux.' The Alliance Against a Nuclear Iran stated that the Islamic Republic poses a direct threat to the freedom of navigation and maritime trade. The US Navy has intensified patrols to ensure the security of international shipping in the Strait of Hormuz, and the Pentagon is strengthening its defensive posture in the Persian Gulf.