WASHINGTON (Reuters) -The United States imposed a fresh round of sanctions targeting Iran’s oil industry on Monday, hitting more than 30 brokers, tanker operators, and shipping companies for their role in selling and transporting Iranian petroleum, the Treasury Department said.
The announcement comes as U.S. President Donald Trump seeks to bring Iran’s crude exports to zero to prevent the country from obtaining a nuclear weapon, and builds on the layers of sanctions already imposed by his government and the previous Biden administration.
“Iran continues to rely on a shadowy network of vessels, shippers, and brokers to facilitate its oil sales and fund its destabilizing activities,” said Treasury Secretary Scott Bessent in a statement.
“The United States will use all our available tools to target all aspects of Iran’s oil supply chain, and anyone who deals in Iranian oil exposes themselves to significant sanctions risk,” he added.
The new sanctions target oil brokers in the United Arab Emirates and Hong Kong, tanker operators and managers in India and China, the head of Iran’s National Iranian Oil Company, and the Iranian Oil Terminals Company, Treasury said.
The Iranian Oil Terminals Company oversees all operations at Iran’s oil terminals, including Kharg Island Oil Terminal, through which a majority of Iranian oil flows, and South Pars Condensate Terminal, which accounts for 100% of Iran’s gas condensate exports, according to Treasury.
Trump earlier this month had restored his “maximum pressure” campaign on Iran that includes efforts to drive the country’s oil exports to zero, reimposing Washington’s tough policy on Iran that was practiced throughout Trump’s first term.
Oil is a top source of revenue for Iran, and targeting the country’s exports is meant to deny the government funds for its nuclear and missile programs. The move generally prohibits any U.S. individuals or entities from doing any business with the targets and freezes any U.S.-held assets.
Trump had accused his predecessor, President Joe Biden, of failing to rigorously enforce oil-export sanctions.
Despite U.S. sanctions, Tehran’s oil exports brought in $53 billion in 2023 and $54 billion a year earlier, according to U.S. Energy Information Administration estimates.
Output during 2024 was running at its highest level since 2018, based on OPEC data.
Trump had driven Iran’s oil exports to near-zero during part of his first term after re-imposing sanctions, but they rebounded under Biden’s White House tenure as Iran succeeded in evading sanctions.
It is unclear if Trump’s measures will push Iran’s exports back down significantly.
China does not recognize U.S. sanctions and Chinese firms buy the most Iranian oil. China and Iran have built a trading system that uses mostly Chinese yuan and a network of middlemen, avoiding the dollar and exposure to U.S. regulators.
The Paris-based International Energy Agency believes Saudi Arabia, the United Arab Emirates and other OPEC members have spare capacity to make up for any lost exports from Iran, also an OPEC member.
(Reporting by Katharine Jackson, Richard Valdmanis, Daphne Pseladakis and Doina Chiacu; Editing by Brendan O’Boyle and Bill Berkrot)
Comments