U.S. Sanctions Iranian Oil Smuggling Networks and Shadow Fleet Vessels

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed new sanctions on multiple networks involved in transporting and purchasing billions of dollars’ worth of Iranian oil, with some proceeds benefiting Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), a designated Foreign Terrorist Organization.

At the center of the sanctions is a network of companies run by Iraqi-British businessman Salim Ahmed Said that has been smuggling Iranian oil disguised as Iraqi oil since at least 2020. Said’s operation uses ship-to-ship transfers and blending techniques to obscure the oil’s origins.

“As President Trump has made clear, Iran’s behavior has left it decimated. While it has had every opportunity to choose peace, its leaders have chosen extremism,” said Secretary of the Treasury Scott Bessent. “Treasury will continue to target Tehran’s revenue sources and intensify economic pressure to disrupt the regime’s access to the financial resources that fuel its destabilizing activities.”

The action represents the eighth round of sanctions targeting Iran’s oil trade since President Trump issued National Security Presidential Memorandum 2, which directed a campaign of maximum pressure on Iran.

These new designations mark the first sanctions since President Trump hinted at potentially easing scrutiny of Iran’s exports following U.S. airstrikes on Iran’s nuclear facilities last month—a move that appeared to undercut his “maximum pressure” foreign policy position.

OFAC’s sanctions also target Iran’s “shadow fleet” – vessels engaged in the covert delivery of Iranian oil. This fleet enables Iran to transport petroleum and generate revenue, relying on non-sanctioned vessels to conduct ship-to-ship transfers and receive Iranian oil from sanctioned vessels before shipping the cargo to buyers in Asia.

Among the sanctioned vessels are the Cameroon-flagged VIZURI, Comoros-flagged FOTIS, and Panama-flagged THEMIS and BIANCA JOYSEL, which have collectively shipped tens of millions of barrels of Iranian oil worth billions of dollars.

The sanctions freeze all U.S.-based property and interests of the designated entities and prohibit transactions by U.S. persons involving any property or interests of blocked persons. Violations may result in civil or criminal penalties for both U.S. and foreign persons.

The Department of State is concurrently designating six entities and identifying four vessels for knowingly engaging in significant transactions involving Iranian petroleum or petroleum products.