Targeting the Shadows: U.S. Measures Against Iranian Oil Smuggling and Covert Shipping Operations

According to a recent report from the U.S. Department of the Treasury, new sanctions have been enacted against several networks involved in the illicit trade of Iranian oil, which has reportedly funneled billions into the hands of Iran’s Islamic revolutionary Guard Corps-Qods Force (IRGC-QF), recognized as a Foreign Terrorist association. Central to thes sanctions is an operation led by Salim Ahmed Said, an Iraqi-British entrepreneur who has been allegedly disguising Iranian oil as Iraqi since at least 2020. His methods include ship-to-ship transfers and blending techniques that effectively hide the true origins of the oil.

Secretary of the Treasury Scott Bessent emphasized that Iran’s actions have left it in a precarious position. “Despite numerous chances for peace, its leadership continues down a path of extremism,” he stated.He assured that efforts would persist to cut off Tehran’s financial lifelines and increase economic pressure aimed at disrupting its destabilizing activities.

This latest round marks eight instances where sanctions have targeted Iran’s oil sector as President Trump initiated his maximum pressure campaign through National Security Presidential Memorandum 2. Interestingly, these measures come on the heels of President Trump suggesting he might reconsider some restrictions on Iranian exports after recent U.S.airstrikes on nuclear sites—a move that seemed contradictory to his hardline stance.

The Office of Foreign Assets Control (OFAC) is also focusing on what’s being termed Iran’s “shadow fleet.” This network consists of vessels covertly transporting Iranian oil using non-sanctioned ships for ship-to-ship transfers before delivering their cargoes to buyers across Asia—essentially allowing Iran to sidestep international restrictions.

Among those vessels now facing sanctions are several flagged under different nations: VIZURI from Cameroon, FOTIS from Comoros, and THEMIS and BIANCA JOYSEL from Panama—all implicated in shipping vast quantities of Iranian crude worth billions.

These sanctions will freeze any U.S.-based assets linked to these entities while prohibiting American individuals or businesses from engaging with them financially. Non-compliance could lead to serious civil or criminal repercussions for both domestic and foreign parties involved.

In tandem with this action, six additional entities are being designated by the State Department for their significant involvement in transactions related to Iranian petroleum products—further tightening scrutiny over this contentious trade route.