Treasury sanctions Iranian oil network and shipping facilitators

The U.S. Treasury Department's Office of Foreign Assets Control sanctioned a network of front companies and shipping facilitators involved in selling Iranian crude oil that funds the country's armed forces, according to a Treasury statement.

The sanctions target entities that Treasury said help bankroll Iran's military through oil sales used to supplement the military's annual budget and finance rebuilding efforts following what the statement described as Iran's defeat in a 12-day conflict with Israel.

"Today's action continues Treasury's campaign to cut off funding for the Iranian regime's development of nuclear weapons and support of terrorist proxies," Treasury Secretary Scott Bessent said in the statement. "Disrupting the Iranian regime's revenue is critical to helping curb its nuclear ambitions."

OFAC also sanctioned six vessels as part of expanded measures against what it characterized as Iran's shadow fleet of tankers used to transport oil exports. The Treasury said the current administration has sanctioned over 170 vessels involved in shipping Iranian petroleum and petroleum products.

The sanctions package includes additional measures against Iranian airline Mahan Air, which Treasury said has collaborated with the Islamic Revolutionary Guard Corps-Qods Force to supply Iran-backed groups in the Middle East. According to the statement, Mahan Air participated in efforts to arm the former Syrian government of Bashar al-Assad.

The actions were taken under counterterrorism authority Executive Order 13224 and Executive Order 13902, which targets Iran's petroleum and petrochemical sectors. Treasury said the sanctions continue the economic pressure campaign against Iranian oil sales outlined in National Security Presidential Memorandum 2.

The measures follow previous sanctions implemented in February and May targeting enablers of Iran's military oil exports, according to the Treasury statement.

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