Photo: chethalan / Shutterstock.com
The United States has imposed sanctions on 35 entities and vessels involved in transporting Iranian oil to international markets, as part of a major crackdown on Iran’s petroleum trade network.
The action comes in response to Iran’s October 1, 2024 attack on Israel and recent nuclear escalations, building upon the October 11 sanctions that designated 10 entities and identified 17 vessels as blocked property.
“Iran continues to funnel revenues from its petroleum trade toward the development of its nuclear program, proliferation of its ballistic missile and unmanned aerial vehicle technology, and sponsorship of its regional terrorist proxies,” stated Acting Under Secretary Bradley T. Smith.
The sanctions target a complex network of tankers and shipping management firms operating across multiple jurisdictions. These operators employ sophisticated evasion tactics, including false documentation, manipulation of vessel tracking systems, and frequent changes to vessel names and flags.
The sanctions announced today designate 21 vessels and 14 entities as blocked property. Among the notable cases, the CERES I, owned by Hong Kong-based Ceres Shipping Limited, was involved in a significant ship-to-ship transfer of nearly 300,000 metric tons of Iranian crude oil near Singapore in January 2024. The vessel later made headlines in July 2024 when it was involved in a collision causing an oil spill near Malaysia, with investigators noting suspicious inconsistencies in its tracking signals.
The sanctions’ reach extends to companies across multiple countries, including the UAE, Panama, India, and China. In one instance, the LADY LUCY, operated by Liberia-registered Constellation Maritime Services Limited, transported Iranian fuel oil worth approximately $36 million to the UAE in just two months.
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has also issued comprehensive guidance to help the maritime industry identify potential sanctions evasion patterns and implement compliance best practices.
The sanctions not only aim to throttle Iran’s shadow fleet but also spotlight the broader risks tied to non-compliant maritime practices. As Iran’s crude continues to flow under the radar, the risk of environmental disasters—such as oil spills from vessels operating without proper oversight—remains a pressing concern.
Under these sanctions, all U.S.-based property and interests of the designated entities are blocked, and U.S. persons are prohibited from engaging in transactions with them. Violations may result in civil or criminal penalties.
By targeting the Iran’s shadow fleet, the U.S. aims to significantly impair Iran’s ability to export oil and generate revenue, potentially impacting its capacity to fund activities deemed destabilizing by the U.S. As Washington tightens the noose, the maritime industry must tread carefully, ensuring adherence to sanctions and safeguarding global trade integrity.
The 21 vessels and 14 entities designated today include:
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