U.S. Treasury Targets Iran’s ‘Shadow Fleet’ in Latest Round of Oil Sanctions

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced a new round of sanctions targeting Iran’s petroleum sector, including the designation of Iran’s Minister of Petroleum and multiple shipping companies involved in transporting Iranian oil.

At the center of the sanctions is Mohsen Paknejad, Iran’s Minister of Petroleum since August 2024, who oversees the export of tens of billions of dollars worth of Iranian oil and has directed significant oil allocations to Iran’s armed forces. Under Paknejad’s leadership, military oil allocations are projected to increase dramatically, with estimates suggesting that by the end of 2025, over half of Iran’s total oil revenues will be directed to its armed forces.

“The Iranian regime continues to use the proceeds from the nation’s vast oil resources to advance its narrow, alarming self-interests at the expense of the Iranian people,” said Treasury Secretary Scott Bessent.

The sanctions specifically target Iran’s so-called “shadow fleet” – a network of vessels used to disguise Iranian oil shipments primarily destined for China. OFAC identified 13 vessels in the scheme, including the Hong Kong-flagged PEACE HILL, which has transported millions of barrels of Iranian oil, and the San Marino-flagged SEASKY, which has moved tens of thousands of metric tons of fuel oil since early 2024.

The enforcement action extends to shipping companies across multiple jurisdictions, including Hong Kong, the Seychelles, Bangladesh, and Suriname. Notable entities targeted include Hong Kong Heshun Transportation Trading Limited, Seasky Marine Co., Limited, and Sun Science International Co., Limited.

In a parallel action, the U.S. Department of State has designated three additional entities: Singapore-based Shipload Maritime PTE. LTD. and Indonesian companies PT. Bintang Samudra Utama and PT. Gianira Adhinusa Senatama.

The sanctions, issued under Executive Order 13902, represent the third round of enforcement actions targeting Iranian oil sales since February 2025, when the President ordered a campaign of maximum pressure on Iran. Under these measures, all property and interests of the designated entities within U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from conducting transactions with them.

Maritime stakeholders should note that violations may result in civil or criminal penalties, with OFAC maintaining authority to impose civil penalties on a strict liability basis.

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