The U.S. Treasury Department is increasing pressure on Iran’s illicit petroleum trade, having sanctioned 29 vessels that are part of the Iran Shadow Fleet. These ships are accused of evading Iran oil sanctions, a move designed to cut off revenue for Iran’s regime that funds its military and weapons programs. The Treasury’s Office of Foreign Assets Control (OFAC) led this action against the Iran Shadow Fleet.
Targeting Deceptive Shipping Practices of the Iran Shadow Fleet
These vessels and their management firms are implicated in transporting hundreds of millions of dollars in Iranian petroleum, utilizing deceptive shipping practices. These methods obscure the oil’s origin, making it difficult to trace shipments and disrupting Iran oil sanctions evasion. The goal is to disrupt Iran’s global oil-smuggling networks, with this news highlighting ongoing U.S. efforts and sophisticated evasion tactics employed by the Iran Shadow Fleet. The Treasury sanctions specifically target these methods.
Key Players Identified in the Iran Shadow Fleet
An Egyptian businessman, Hatem Elsaid Farid Ibrahim Sakr, is among those sanctioned, described as a key foreign enabler whose companies are linked to seven of the targeted vessels within the Iran Shadow Fleet. Several shipping companies also face OFAC sanctions, operating in jurisdictions including the UAE, India, Panama, and the Marshall Islands. The DIANA, a Jamaica-flagged vessel owned by Aleah Shipping Inc., has moved millions of barrels of fuel oil since May 2025. Other targeted ships include the Cook Islands-flagged MARUTI and MAJESTY, and the Palau-flagged KURDOS, KURDOS II, and KURDOS III, all of which have moved significant amounts of Iranian petroleum via the Iran Shadow Fleet.
Background of Evasion by the Iran Shadow Fleet
Iran relies heavily on its “shadow fleet” to sell oil despite U.S. and international sanctions. The Iran Shadow Fleet employs various deceptive methods, including ship-to-ship transfers, name changes, disabling tracking systems, and using false shipping documents. These tactics complicate enforcement efforts, allowing sanctioned petroleum to enter global markets and generate revenue for Iran’s programs. This persistent use of shadow fleet vessels underscores the challenges in enforcing Iran oil sanctions.
Broader Sanctions Campaign Against Iran Revenue Disruption
This action is part of a larger U.S. strategy to exert maximum economic pressure on Iran, aiming for Iran revenue disruption. Since President Trump resumed office, over 180 vessels have been sanctioned as part of this campaign to raise costs for Iranian oil exporters and reduce Iran’s revenue per barrel. The U.S. has stated its commitment to preventing Iran from acquiring nuclear weapons, with these sanctions intended to hinder funding for Iran’s military and weapons programs, impacting the operations of the Iran Shadow Fleet.
Implications for Shipping and the Iran Shadow Fleet
The sanctions have significant implications for businesses working with sanctioned entities, including potential penalties and restricted access to banking and insurance. Ports may also deny access to these shadow fleet vessels. The involvement of companies from numerous countries highlights the global reach of these evasion networks and the pervasive nature of the Iran Shadow Fleet. This news affects the international shipping industry, underscoring the risks of dealing with Iranian petroleum trade and reinforcing the Treasury’s commitment to monitor and act against illicit petroleum trade to disrupt Iran’s financial lifelines. The Treasury sanctions are a clear signal to those involved with the Iran Shadow Fleet.