Treasury Slaps Additional Sanctions on Iran’s Oil Smuggling Machine

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on 26 entities, individuals, and vessels linked to the Al-Qatirji Company, a Syrian conglomerate at the heart of a vast oil-smuggling operation.

The action targets a key revenue stream for Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and the Houthis, cutting off hundreds of millions of dollars in funding.

The Al-Qatirji Company, previously sanctioned for facilitating fuel sales between the Syrian regime and ISIS, has evolved into a primary financial conduit for the IRGC-QF.

“Iran is increasingly relying on key business partners like the Al-Qatirji Company to fund its destabilizing activities and web of terrorist proxies across the region,” said Acting Under Secretary Bradley Smith.

The sanctions, implemented under Executive Order 13224, aim to cripple the company’s ability to export Iranian oil to Syria and East Asia, particularly China. The Al-Qatirji Company’s operations have become so extensive that it now enables the IRGC-QF to generate and access hundreds of millions of dollars in revenue annually, with a portion of these funds funneled to the Houthis.

Since November 2023, the Iranian-backed Houthis have launched over 100 drone and missile attacks on international ships in the Red Sea and Gulf of Aden. Consequently, many ships now divert around the Cape of Good Hope—a detour that significantly extends transit times, increases emissions, and raises shipping costs. 

A fleet of 13 vessels controlled by Al-Qatirji has been identified in the sanctions, including ships flagged in Guyana, Iran, Palau, Panama, and Barbados. The company’s intricate network involves multiple shipping management firms and shell companies across India, Panama, Lebanon, Iran, Marshall Islands, and Seychelles, all now designated for their roles in supporting the illicit operations.

The leadership of Al-Qatirji Company has also come under scrutiny. Hussam Al-Qatirji, who assumed a leadership role following the death of Muhammad Al-Qatirji in mid-2024, has been designated along with other key figures for their direct involvement in the company’s oil portfolio and interactions with IRGC-QF officials.

This comprehensive action by the Treasury Department represents a significant effort to dismantle a complex financial network that has been fueling regional instability. By targeting the Al-Qatirji Company and its associates, the U.S. aims to restrict Iran’s ability to finance its proxy groups and destabilizing activities in the Middle East.

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