U.S Tightens Noose on Iran's 'Ghost Fleet' After Israel Attack

The United States has intensified its sanctions on Iran’s petroleum and petrochemical sectors, targeting a network of illicit shipping facilitators and vessels in Iran’s so-called “ghost fleet.”

The move comes on the heels of Iran’s October 1st attack on Israel, its second direct attack on Israel this year. The sanctions aim to disrupt Iran’s ability to fund destabilizing activities in the region and intensifies financial pressure on Iran, limiting the regime’s ability to earn critical energy revenues to undermine stability in the region and attack U.S. partners and allies.

The U.S. Department of the Treasury, in coordination with the State Department, has designated 10 entities and identified 17 vessels as blocked property under Executive Order 13846. These actions target companies and vessels involved in the shipment of Iranian petroleum and petrochemical products, supporting the U.S.-designated National Iranian Oil Company (NIOC) and Triliance Petrochemical Co. Limited.

“Today’s sanctions target Iranian efforts to channel revenues from its energy industry to finance deadly and disruptive activity—including development of its nuclear program, the proliferation of ballistic missiles and unmanned aerial vehicles, and support to regional terrorist proxies—with dangerous consequences for the region and the world,” said Treasury Secretary Janet L. Yellen.

The sanctions target a diverse range of entities across multiple jurisdictions. UAE-based Max Maritime Solutions FZE has conducted ship-to-ship transfers of Iranian oil with U.S.-designated National Iranian Tanker Company (NITC) vessels. Hong Kong-based Cathay Harvest Marine Ltd’s vessel LUNA PRIME has transported Iranian oil to Chinese refineries. Liberia-based Elza Shipping SA, owner of the ELZA, has transferred Iranian condensate near Singapore. UAE-based Jazira Das International Oil Products Trading LLC has been implicated in masking Iranian crude as Emirati oil. Several other companies in Marshall Islands, PRC, Malaysia, and Panama have also been involved in transporting Iranian oil products.

The U.S. Department of State has also designated six entities and identified six additional vessels as blocked property, further tightening the net on Iran’s oil trade. These actions align with the recently enacted Stop Harboring Iranian Petroleum Act (SHIP Act), which imposes sanctions on foreign persons involved in the trade of Iranian petroleum products.

By targeting the “ghost fleet” and its operators, 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 part of these latest actions, the following vessels have been sanctioned or identified as blocked property: