U.S. Sanctions Iran’s Shadow Fleet Over Brutal Crackdown on Protesters

The U.S. Department of the Treasury on Thursday escalated economic pressure on Iran, sanctioning nine vessels and eight management companies tied to Tehran’s shadow fleet, as authorities intensified a nationwide crackdown on protests and imposed widespread internet shutdowns.

The action by the Treasury Department’s Office of Foreign Assets Control (OFAC) targets ships that have collectively moved hundreds of millions of dollars’ worth of Iranian oil, liquefied petroleum gas, and petrochemicals to foreign markets—revenue U.S. officials say is diverted away from the civilian economy and toward militant proxies, weapons programs, and internal security forces.

Iran has been gripped by nationwide protests since late December 2025, sparked by economic collapse, currency devaluation, and soaring living costs. The unrest quickly escalated into mass demonstrations for political change, met by a sweeping security crackdown involving live fire, mass arrests, internet shutdowns, and reported executions. Human rights groups estimate thousands have been killed and tens of thousands detained.

“The Iranian regime continues to prioritize funding terrorism and repression over the well-being of its own people,” Treasury Secretary Scott Bessent said. “This behavior has driven Iran’s currency and living standards into free fall.”

The sanctions were imposed under Executive Order 13902, which targets Iran’s petroleum and petrochemical sectors, and align with the administration’s broader maximum pressure campaign outlined in National Security Presidential Memorandum 2.

Vessels Tied to Shadow Fleet Operations

Among the designated vessels are the Palau-flagged SEA BIRD, managed by UAE-based Horizon Harvest Shipping LLC, which has transported hundreds of thousands of barrels of Iranian liquified petroleum gas to East Asia, Djibouti, and the UAE. The Palau-flagged CESARIA, owned by Seychelles-based Galeran Service Corp, has moved millions of barrels of Iranian crude oil to East Asia since late 2025.

The LONGEVITY 7, an unknown-flagged vessel owned by Marshall Islands-based Longevity Shipping Limited, has operated as part of Iran’s shadow fleet since at least 2020, transporting Iranian petrochemicals to East Asia and recently carrying hundreds of thousands of barrels of Iranian clean condensate via ship-to-ship transfers.

Other sanctioned vessels include the Comoros-flagged AVON and the Panama-flagged AQUA SPIRIT, both of which have transported significant volumes of Iranian petroleum products to destinations including Pakistan, Bangladesh, and Somalia throughout 2025.

Treasury said the eight designated management companies—registered across multiple jurisdictions including India, the Marshall Islands, and Seychelles—were largely established for the sole purpose of owning and operating sanctioned vessels.

Enforcement and Human Rights Context

The sanctions block all property and interests in property of the designated entities within U.S. jurisdiction and prohibit U.S. persons from conducting transactions with them. Any entities owned 50% or more by sanctioned parties are automatically subject to blocking under OFAC rules.

Treasury officials said the measures coincide with Iran’s expanded suppression of protests and nationwide internet restrictions aimed at limiting international visibility into domestic unrest.

OFAC warned that violations of U.S. sanctions can lead to substantial civil and criminal penalties, including strict liability enforcement against financial institutions and shipping firms facilitating prohibited transactions.

Editorial Standards · Corrections · About gCaptain

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 107,345 members