The US Department of the Treasury issued a statement on Friday, October 11th, expanding sanctions on Iran’s oil and petrochemical industries in response to the large-scale missile attack launched by Iran on Israel on October 1st.
In the statement, the US Department of the Treasury stated that this move has intensified Iran’s financial pressure and restricted the regime’s ability to earn crucial energy revenue. The Treasury Department also mentioned that sanctions can now be imposed on anyone engaging in business in Iran’s oil and petrochemical sector.
The statement further indicated that the Treasury Department’s Office of Foreign Assets Control has sanctioned 10 entities in multiple jurisdictions and identified 17 vessels as blocked property for their involvement in transporting oil and petrochemical products in support of the National Iranian Oil Company.
At the same time, the US Department of State has taken measures to prevent funds from flowing towards Iran’s weapons programs and support to “terrorist agents and partners.”
The State Department imposed sanctions on 6 entities involved in Iran’s oil trade and identified 6 vessels as blocked property.
White House National Security Advisor Jake Sullivan stated in a release that the new sanctions on Friday also include measures against the “Ghost Fleet,” which transports illegal Iranian oil to global buyers.
“These measures will help further deprive Iran of its financial resources. These resources are used to support its missile programs and provide support to terrorist organizations. These terrorist groups pose a threat to the US and its allies and partners,” Sullivan said.
Regarding the “Ghost Fleet,” the Treasury Department mentioned that Iran’s oil exports are facilitated by a network of illegal transport service providers across multiple jurisdictions who, through deception and confusion, load and transport Iranian oil for sale to buyers in Asia.
Headquartered in the United Arab Emirates (UAE), “Max Maritime Solutions FZE” company used its managed vessels to conduct several ship-to-ship transfers of Iranian oil with affiliate vessels of the National Iranian Tanker Company (NITC), a subsidiary of the National Iranian Oil Company (NIOC), shipping Iranian oil to refineries in the People’s Republic of China (PRC).
During Biden’s tenure, Iran’s oil exports have increased as Iran successfully evaded sanctions, with China becoming a major buyer of Iranian oil. Reportedly, China purchases nearly 90% of Iran’s crude oil exports.
“In response to Iran’s attack on Israel, the US is taking decisive action to further weaken Iran’s ability to fund and conduct destabilizing activities,” said US Treasury Secretary Janet L. Yellen. “Today’s sanctions target Iran’s use of its energy industry revenue to fund deadly and destabilizing activities, including the development of its nuclear program, ballistic missile proliferation, unmanned aerial vehicles, and support for regional terrorist agents. Iran’s activities pose dangerous consequences for the region and the world. We will not hesitate to take further action to hold Iran accountable.”