U.S. sanctions 35 vessels implicated in Iranian oil trade

On December 3, 2024, the U.S. Treasury Department announced significant sanctions against 35 entities and vessels involved in transporting Iranian oil to international markets, in violation of existing sanctions. This action is part of a broader effort to disrupt Iran's extensive oil trade operations, which the Treasury describes as a complex scheme involving the frequent changing of ship names and flags. These tactics have allowed Iran to continue its petroleum exports despite being under sanctions, facilitating increased revenue that supports its nuclear program and various regional militant proxies. The Treasury reported the existence of a so-called 'shadow fleet', composed of oil tankers that utilize multiple aliases and flag registrations to evade detection and regulatory efforts. In addition to changing names and flags, these entities also provide falsified documents and manipulate tracking systems to disguise their activities. This deceptive operational method is critical for maintaining Iran's oil exports, which have been identified as a vital funding source for the country’s nuclear capabilities and military developments. The sanctioned vessels include several flagged in different countries, illustrating the international nature of the network involved. Specifically, ships such as the Jaya (Marshall Islands), Phonix (Guyana), and others flagged in countries like Cook Islands, Sao Tome and Principe, and Liberia were part of this extensive operation. The actions taken by the Treasury indicate a serious commitment to countering Iran's illicit oil trade, which the U.S. considers a significant threat to regional stability and does not shy away from connecting to further hostilities and destabilization efforts in the Middle East. Bradley Smith, the acting under-secretary for terrorism and financial intelligence, emphasized the U.S. commitment to dismantling the operational apparatus that supports Iran's oil shipments and directly funds its military ambitions. This announcement serves as a reminder that the U.S. will continue to leverage all available resources to impose accountability on those who assist in undermining its sanctions regime against Iran, which the U.S. perceives as a key adversary in the region. Through these measures, the Treasury aims to hinder not only the business of oil transportation connected to Iran but also the broader strategy it employs to further its geopolitical agenda, including nuclear proliferation and support for terrorism.