U.S. Treasury Takes Major Action Against Iran Maritime Network and Houthi Oil Smuggling Operations

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced major enforcement actions targeting Iran’s defense industry procurement networks and Houthi oil smuggling operations.

At the center of the Iran-focused sanctions is the Panama-flagged bulk carrier SHUN KAI XING, owned by Hong Kong-based Unico Shipping Co Ltd. The vessel was caught transporting sensitive machinery intended for Iran’s defense industry. The shipment was destined for two Iranian companies: the OFAC-designated Rayan Roshd Afzar Company (RRA) and Towse Sanaye Nim Resanaye Tarashe.

“The United States remains resolved to disrupt any effort by Iran to procure the sensitive, dual-use technology, components, and machinery that underpin the regime’s ballistic missile, unmanned aerial vehicle, and asymmetric weapons programs,” said Treasury Secretary Scott Bessent.

The investigation revealed a complex network of companies involved in the attempted smuggling operation. China-based Futech Co Limited and Dongguan Zanyin Machinery and Equipment Co Ltd were identified as the original shippers of the sensitive goods. When the shipment was inspected, Unico Shipping attempted to conceal the Iranian destinations through falsified documentation.

In a parallel action, OFAC targeted the Houthi maritime network, sanctioning four individuals, 12 entities, and two vessels involved in oil smuggling operations. The sanctions, the largest against the Iran-backed group to date, specifically target Houthi front companies operating in Sana’a and Hudaydah, Yemen, which have been generating significant revenue through black market oil sales.

Among the designated entities is Black Diamond Petroleum Derivatives, a Sana’a-based company managed by U.S.-designated Houthi spokesperson Mohammed Abdulsalam. The company has been identified as a key player in smuggling Iranian oil into Yemen. Another significant target is Royal Plus Shipping Services and Commercial Agencies, which has facilitated oil sales from the Islamic Revolutionary Guards Corps (IRGC) and managed weapons-related financial transfers between the Houthis, Russia, and Iran.

“Today’s action—our most significant to date against the group—underscores our commitment to disrupting the Houthis’ financial and shipping pipelines that enable their reckless behavior in the Red Sea and the surrounding region,” said Deputy Secretary of the Treasury Michael Faulkender.

The sanctions were implemented under Executive Order 13382, which targets proliferators of weapons of mass destruction and their delivery systems, and Executive Order 13224, as amended. These actions build upon previous enforcement measures taken throughout 2024 and early 2025, reflecting an escalating response to Iran-backed maritime threats.

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