The United States has broadened its sanctions on Iran’s oil and petrochemical sectors, now focusing on ships and their owners involved in the illegal transportation of Iranian petroleum.
The U.S. Treasury and State Department announced sanctions on several companies from Suriname, India, Malaysia, and China. These firms were accused of “knowingly engaging in significant transactions” related to the purchase, sale, transport, or marketing of petroleum or petroleum products from Iran.
Among those sanctioned were Suriname-based Strong Roots Provider NV, Glazing Future Management NV, and Engen Management NV, India’s Gabbaro Ship Services PVT LTD, Malaysia’s Alya Marine Sendirian Berhad, and Hong Kong’s Celia Armas Ltd. The ships Berg 1, Voras, Hornet, Shanaye Queen, Carol, and Octans—owned by these companies—were found to be involved in transporting Iranian oil.
These U.S. sanctions come in response to Iran’s recent missile attack on Israel, which occurred earlier this month. The attack triggered a sharp rise in oil prices, with Brent crude surging by up to 8% in just one week. National Security Advisor Jake Sullivan explained that the new sanctions also target Iran’s “Ghost Fleet,” a group of vessels that secretly transports Iranian oil to buyers worldwide.
“These actions are designed to further limit Iran’s financial resources, which it uses to support its missile programs and aid terrorist groups that pose a threat to the United States, its allies, and its partners,” Sullivan said.
Iran’s crude oil exports are believed to have significantly slowed in October, as the country prepares for potential retaliation following its missile strike on Israel. Israeli military actions against Iranian oil facilities have been discussed, leading to a drop in Iran’s oil exports. Exports fell to about 600,000 barrels per day (bpd) in the first 10 days of October—about one-third of the volumes seen in recent months.
Although Iran’s oil exports reached as high as 1.83 million bpd in September, analysts expect a sharp decline in October. Even if exports pick up again, they are not expected to exceed 1.35 million bpd by the end of the month.
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