The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced on Thursday (December 18) the implementation of targeted sanctions against 29 oil tankers and their management companies. This move is aimed at dismantling the “shadow fleet” used by Iran to transport oil, cutting off its economic lifeline that supports military expansion.
The US Treasury stated that the sanctioned vessels and companies used deceptive shipping methods to transport products worth hundreds of millions of dollars. The US government has indicated that sanctions against Iran are targeting its nuclear program and support for armed proxies in the Middle East, while Iran insists its nuclear research is solely for civilian purposes.
John Hurley, the Deputy Assistant Secretary for Terrorist Financing and Financial Crimes at the Treasury, emphasized that the US will continue to “deprive the regime of opportunities to fund its military and weapons programs through oil revenues,” reaffirming the Trump administration’s stance against Iran possessing nuclear weapons.
This action was carried out under Executive Order 13902, marking a comprehensive shift in US policy towards Iran. Following the breakdown of indirect nuclear talks between the two countries in June this year, diplomatic efforts have stalled, leading to a sudden escalation in tensions. This escalated into a 12-day air campaign, during which Israel and the US jointly conducted military strikes on multiple Iranian nuclear facilities.
Hurley stated, “The Treasury will continue to cut off Iran’s oil revenue used to fund its military and weapon projects.”
The term “shadow fleet” refers to vessels transporting sanctioned oil. These vessels are typically old, with opaque ownership structures, and lack the advanced insurance coverage required by most oil giants and international standard ports.
Entities subject to sanctions use “shell companies” registered in multiple jurisdictions to conceal true ownership and transport products including crude oil, fuel oil, asphalt, and condensate, valued at hundreds of millions of dollars.
Thursday’s action specifically named Egyptian businessman Hatem Elsaid Farid Ibrahim Sakr, accusing his network of collaborating with companies associated with the Iranian Ministry of Defense. Since President Trump returned to the White House, the US has sanctioned over 180 implicated vessels, aiming to raise Iran’s trade costs and squeeze its profit margins.
In addition to targeting Iran’s domestic fleet, the US has recently intensified its crackdown on global evasion networks.
On December 10, the US seized the oil tanker “Skipper” off the coast of Venezuela. This vessel, previously known as Adisa, had been sanctioned during the Biden administration in 2022 for involvement in Iranian smuggling.
John Moolenaar, Chairman of the House Committee on Combating the CCP, pointed out that satellite images showed the “Skipper” operating in ghost mode and engaging in ship-to-ship transfers with the Chinese-controlled tanker “Luois” in the South China Sea.
Treasury Secretary Scott Bessent emphasized that Communist China has become an indispensable client and operational hub in the evasion networks of Iran and Venezuela.
Currently, the US Congress is urging the Treasury to review and sanction more tankers controlled by the Chinese government involved in such illegal transshipments.