U.S. Sanctions on Iran Trade Vessels Allow Scrapping
Dubai-based GMS, a buyer of ships and offshore vessels for recycling, has received the first U.S. permit to buy vessels sanctioned over Iran trade. The licenses issued in April will allow the scrapping of four container ships: Yogi, Timon, Rantanplan, and Bigli.
According to GMS Chief Executive Officer Anil Sharma, these vessels were named in a Treasury Department notice in July 2025, which also announced “massive action” against the shadow fleet and entourage of Hossein Shamkhani. The latter’s father was an adviser to Iran‘s former Supreme Leader Ayatollah Khamenei.
GMS has started the process to acquire the ships but faces caution from buyers in the next stage of the deal since the vessels are under sanctions. The company has requested OFAC to remove them from its blacklist, citing a lack of a safe and legal method to remove ships from the expanding shadow fleet.
Shadow Fleet’s Growth
The licenses could pave the way for more such ships to reach the end of their useful lives. Scraping firms and dealers like GMS have long complained about the lack of a safe and legal method to remove ships from the expanding shadow fleet, which includes old, obsolete vessels operating to flout sanctions.
Sharma noted that “sanctions did not eliminate the trade; they eliminated the rules. The business is still going on, but it is not a rule-based thing.” He emphasized that if these old vessels are removed, there will be one less vessel to carry sanctioned oil.
These ships were operated by United Arab Emirates-based Marvise SMC DMCC, which was managed by Shamkhani’s network, according to the Treasury Department. The owner of the vessels was separate from Marvise and not sanctioned, according to Sharma, who chose not to name the company.
The shadow fleet has increased after the Russian invasion of Ukraine in 2022 and after the U.S.-Iran war. These vessels operate without proper documents, insurance, or maintenance, carrying oil from Iran, Venezuela, and Russia despite sanctions. Washington had added more ships to this blacklist since the U.S-Iran war began in February.
Implications
The growth of the shadow fleet has significant implications for global energy markets. The vessels which operate without proper documentation, insurance, or maintenance carry oil from Iran, Venezuela, and Russia despite sanctions. This development highlights the ongoing challenge of enforcing international sanctions and the need for a safe and legal method to remove ships from the expanding shadow fleet.
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Original Article: U.S Allows Ships Sanctioned Over Iran Trade To Be Scrapped — Marineinsight