- Washington Targets Iranian Oil Exports with Fresh Sanctions.
- U.S. Sanctions Tankers and Firms Linked to Iranian Oil Trade.
- Trump Administration Moves to Cut Iran’s Oil Exports to Zero.
The U.S. Treasury announced on Thursday new sanctions targeting individuals and tankers involved in shipping millions of barrels of Iranian crude oil to China. This move is part of an ongoing effort to increase pressure on Tehran, reports Reuters.
First U.S. Sanctions Under Trump’s New Push
These sanctions are the first action against Iran’s oil sector since U.S. President Donald Trump vowed earlier this week to bring Iran’s crude oil exports to zero. The sanctions focus on entities linked to Iran’s Armed Forces General Staff and its front company, Sepehr Energy, which was designated at the end of 2023.
Entities and Individuals Impacted
According to the Treasury Department, the sanctions target individuals and companies operating in China, India, and the United Arab Emirates. Two vessels, the Panama-flagged CH Billion and the Hong Kong-flagged Star Forest, were targeted for transporting Iranian oil to China. The U.S. accuses these vessels of being part of a scheme that benefited Iran’s military by moving crude oil from Chinese storage facilities.
Effects of Sanctions
The imposed sanctions block access to any assets held in the U.S. by the designated individuals and entities. They also deny access to U.S. foreign assistance.
Tammy Bruce, a State Department spokesperson, emphasized the broader goal of these sanctions, stating, “We will use all tools at our disposal to hold the regime accountable for its destabilizing activities and pursuit of nuclear weapons that threaten the civilised world.” Iran’s mission to the United Nations in New York did not immediately respond to requests for comment.
Iran’s Response and OPEC’s Role
Iran’s President, Masoud Pezeshkian, called on OPEC members this week to unite against possible U.S. sanctions, underscoring the impact these measures could have on global oil markets.
Expert Opinions on Sanctions
Some experts question the effectiveness of these sanctions in fully cutting off Iranian oil exports. Jeremy Paner, a sanctions lawyer at Hughes Hubbard, described the move as a “tactic, not a strategy,” noting that the sanctions did not target Chinese banks facilitating energy transactions. He compared them to similar sanctions imposed under former President Joe Biden, adding, “These kinds of sanctions can be effective, but it’s not going to drive the exports down to zero.”
The sanctions designated Iranian national Arash Lavian, accused of supporting Sepehr Energy, and targeted several companies, including Marshal Ship Management Private Limited, Young Folks International Trading Co., and Lucky Ocean Shipping Limited, for their involvement in Iran’s petroleum sector. The move was described as “an opening shot against China and Iran, designed to put Beijing on notice without disrupting backchannel discussions to explore the potential for a nuclear deal” by the head of geopolitical risk at Rapidan Energy Group, Fernando Ferreira.
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Source: Reuters
