Treasury Intensifies Crackdown on Iran’s Sanctions-Evading Shadow Fleet
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is intensifying its efforts against Iran’s shadow fleet that facilitates the exportation of Iranian petroleum products. This latest action involves designating 29 vessels and their managing firms, aimed at disrupting significant revenue streams from Iranian oil sales.
Overview of Sanctions on Iranian Shadow Fleet
Today’s sanctions target vessels linked to deceptive shipping practices used by Iran to evade international penalties. Specifically, these vessels have collectively transported Iranian petroleum worth hundreds of millions of dollars.
Key Targets and Individuals
- Designated Vessels: 29 vessels are being sanctioned.
- Notable Individual: Hatem Elsaid Farid Ibrahim Sakr, an Egyptian businessman, is specifically named for his associations with seven of these vessels.
Statements from Treasury Officials
John K. Hurley, Treasury Under Secretary for Terrorism and Financial Intelligence, emphasized that the U.S. remains steadfast in preventing Iran from obtaining nuclear weapons. He reaffirmed the commitment to curtail Iran’s military funding through oil revenues.
Background of the Sanction Campaign
This initiative aligns with Executive Order 13902, which imposes sanctions on Iran’s petroleum and petrochemical sectors. The campaign reflects ongoing efforts to apply maximum economic pressure on the Iranian leadership.
Details on Targeted Vessels
- Palau-flagged: Vessels like NEBULA DRIFT and AETHER SAIL have been implicated in transporting large quantities of Iranian petroleum.
- Panama-flagged: Ships such as TIDAL RHYTHM and NOMIKI have also been linked to Iranian oil shipments.
- Cook Islands-flagged: The MAJESTY and S M A have been operational in transporting various Iranian petroleum products.
Effectiveness of Sanctions
Since the reinstatement of stringent measures, over 180 vessels have been sanctioned for engaging in the transportation of Iranian oil. These sanctions not only increase operational costs for Iranian exporters but also significantly reduce their income per barrel.
Implications for the Shipping Industry
Entities with direct or indirect ownership of 50% or more by sanctioned individuals are also affected by these sanctions. All property and interests controlled by the designated parties within the U.S. or by U.S. persons are now blocked and must be reported to OFAC.
Conclusion
The intensification of sanctions against Iran’s shadow fleet highlights the U.S. administration’s strategy to limit Tehran’s financial resources. By targeting both the vessels and the individuals facilitating these oil shipments, the U.S. aims to restrict Iran’s revenue generation capabilities, aligning with broader national security goals.
