U.S. Unveils More Sanctions Targeting Iran’s Shadow Fleet
The United States rolled out a blitz of sanctions on Friday, targeting 40 shipping firms and vessels that it identified as being part of Iran’s so-called shadow fleet of oil tankers, as the Trump administration broadened its efforts to cripple the Iranian economy. The Treasury Department announced the new sanctions, which aim to constrict the network of vessels, intermediaries, and buyers Iran relies on to move its oil to global markets.
The U.S. has dramatically changed its approach to sanctions on Iran in recent weeks. After granting a monthlong exemption to sanctions that allowed the sale of some Iranian oil in March, the Trump administration imposed more aggressive sanctions, in addition to mounting its own blockade of the Strait of Hormuz in parallel to Iran’s. The reversal was intended to choke off the oil revenue that Iran uses to power its economy.
Sanctions Target 40 Shipping Firms and Vessels
The Treasury Department identified 40 shipping firms and vessels as being part of Iran’s shadow fleet, which is used to evade Western sanctions in transporting oil to Asia. These entities are accused of facilitating covert trade and finance flows that support Iran’s oil exports. The sanctions aim to prevent these companies from conducting business with U.S. financial institutions or accessing the American market.
The Trump administration also imposed sanctions on an independent Chinese refinery, Hengli Petrochemical Refinery, which is one of Iran’s largest customers for crude oil and other petroleum products. This move is seen as a significant escalation in the U.S.’s efforts to choke off Iran’s ability to generate revenue from its oil exports.
Treasury Secretary Warns of Further Action
Treasury Secretary Scott Bessent warned that the department will continue to take action against entities that facilitate Iran’s oil trade, stating, “Any person or vessel facilitating these flows — through covert trade and finance — risks exposure to U.S. sanctions.” This warning suggests that further sanctions are likely in the coming weeks and months.
The U.S.’s efforts to cripple Iran’s economy have significant implications for global energy markets. The Trump administration’s actions aim to reduce Iran’s ability to generate revenue from its oil exports, which is a key source of funding for its military and political activities.
Original Article: U.S. Unveils More Sanctions Targeting Iran’s Shadow Fleet – The New York Times — Nytimes