US Imposes Sanctions on Iran’s “Shadow Fleet” Amid Global Energy Crisis
The US Treasury Department’s Office of Foreign Assets Control (OFAC) has announced a new wave of restrictive measures against a complex international network of ships and shell companies accused of transporting crude oil, liquefied natural gas (LNG), and petroleum products to Asian markets. The sanctions target the so-called “shadow fleet” or “ghost fleet,” which is believed to be the lifeblood of Iran‘s energy exports.
From an economic perspective, this development presents a classic paradox. When an economy is subject to an embargo, the market – driven by pure demand and supply – does not stop, but rather shifts into the shadows, increasing transaction costs and rewarding intermediaries willing to take risks. Despite years of restrictions, Iran has continued to export significant volumes of hydrocarbons between 2025 and early 2026, financing its state budget.
Mapping Global Smuggling
The US operation targets a constellation of tankers and gas carriers that exploit the mechanism of “flag-of-convenience” vessels and rely on a network of companies registered in distant and often opaque jurisdictions. The identified routes primarily lead to South Asia, East Asia, and strategic hubs such as Djibouti and the United Arab Emirates.
To provide clarity on the scope of the intervention, the main entities sanctioned are:
- AVON: LNG (to Pakistan/Bangladesh), Comoros, Aayat Ship Management, India
- AL DIAB II: LNG (to Pakistan/Somalia), Palau, Galeran Service Corp, Seychelles
- LONGEVITY 7: Methane/Condensates, unknown, Longevity Shipping Limited, Marshall Islands
Additionally, the tankers EASTERN HERO, AQUA SPIRIT, CHIRON 5, and KEEL have been implicated in transporting high-sulfur-content oil.
Technical and Financial Implications
The legal and financial consequences of Executive Order 13902 are immediate but primarily extraterritorial. The United States, leveraging its dominance in the global banking system, applies the principle of objective responsibility.
- Asset freezing: All assets located in the US or under the control of US citizens linked to sanctioned companies will be blocked.
- Transaction ban: It is prohibited for any financial institution seeking to operate with the American system to process transactions involving these entities. This is the most severe sanction as it renders anyone touching these entities a pariah.
- 50% rule: Sanctions cascade down to any subsidiary where blocked individuals hold a stake of 50% or higher.
The US Treasury emphasizes that the goal is not merely punitive but aims to induce behavioral change (through the possibility of removal from the black list in case of compliance). However, recent economic history teaches us that liquidity is like water: it always finds a way to flow. The “shadow fleet” sustains a significant blow, but it is likely that new actors, attracted by risk premiums, are already ready to replace sanctioned vessels. Alternatively, these ships will be transferred to entities that do not operate with the US, either directly or indirectly.
Until then, as events unfold
Original Article: Guerra del greggio: le nuove sanzioni USA contro la “flotta fantasma” dell’Iran — Scenarieconomici (Italian) | View English Translation