US Treasury Sanctions Syrian Shipping Magnate Involved in Iranian Oil Smuggling

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on over a dozen entities and vessels involved in the illicit shipment of Iranian oil products, part of a broader U.S. efforts to dismantle financial networks supporting terrorism.

The latest action targets operations benefiting the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Hizballah, two organizations previously designated as terrorist groups.

The sanctions specifically implicate four vessels linked to Syrian shipping magnate Abdul Jalil Mallah and his brother Luay al-Mallah. Since Abdul Jalil’s designation in June 2021, Luay al-Mallah has continued to leverage their shipping network to support Iran’s destabilizing activities and its proxies.

“Iran continues to rely heavily on the illicit sale of oil and liquid petroleum gas by the IRGC-QF and Lebanese Hizballah to fund its terrorist proxies and destabilizing activities,” said Acting Under Secretary Bradley T. Smith. He also affirmed the Treasury’s commitment to “disrupting the networks of shippers, brokers, and buyers that facilitate these schemes.”

The sanctions, enacted under counterterrorism authority Executive Order 13224, target several key players in the illicit oil trade. Notable among these are Star Ocean Shipmanage Ltd., a China-based company managing multiple vessels involved in IRGC-QF operations, and Dragon Road Ltd, owner of a ship that transported IRGC-QF products for a Hizballah-affiliated company.

The Mallah family’s shipping network, including vessels like CONFIDENCE P, NOVA, RIVAL, and TIYARA, has been crucial in facilitating illegal trade between Syria and Iran, directly benefiting the IRGC-QF and Hizballah. Luay al-Mallah, now designated for his role in these operations, also owns Oryx Denizcilik Limited Sirketi, a Turkey-based company directed by his sanctioned brother.

This latest action by the U.S. Treasury underscores the ongoing efforts to dismantle the financial networks supporting terrorism and highlights the complex web of international shipping used to circumvent sanctions.