The United States Treasury Department announced on Thursday that it has imposed sanctions on Iran’s oil minister, Mohsen Paknejad, as well as several Hong Kong-flagged vessels.
These vessels are reportedly part of a “shadow fleet” that facilitates the concealment of Iranian oil shipments, allowing Iran to circumvent international sanctions, according to a Reuters report.
The Treasury Department announced sanctions on Thursday against several vessels and their associated companies, including the Hong Kong-flagged Peace Hill and its owner Hong Kong Heshun Transportation Trading Limited.
Also sanctioned were the Iran-flagged Polaris 1, the Seychelles-registered Fallon Shipping Company Ltd, and the Liberia-registered Itaugua Services Inc.
These sanctions are part of the United States’ ongoing efforts to exert economic pressure on Iran, aiming to curb its nuclear ambitions and support for proxy groups in the Middle East.
By targeting the oil minister and the vessels involved in illicit oil trade, the US intends to disrupt Iran’s crucial oil revenue streams, which are vital for financing its activities.
The Treasury Department’s announcement highlighted the US’s commitment to enforcing sanctions against Iran and its determination to hold individuals and entities accountable for facilitating Iran’s sanction evasion.
Disrupts Iran’s oil revenues
The sanctions are expected to have significant implications for Iran’s oil industry and its ability to conduct international trade.
The Treasury Department stated that Paknejad is responsible for overseeing the export of Iranian oil valued at tens of billions of dollars.
Additionally, he has allocated billions of dollars’ worth of oil to Iran’s armed forces for export.
The US Treasury Department has taken action against entities involved in the Iranian oil trade, including those that facilitate the delivery or storage of Iranian oil in China.
These entities, located in multiple jurisdictions including India and China, were designated as owners or operators of vessels that have transported Iranian oil to China or lifted it from storage facilities there.
This move is part of the US government’s ongoing efforts to enforce sanctions against Iran and disrupt its oil export activities, which are a significant source of revenue for the Iranian regime.
Shadow fleet
Iran’s military utilises a vast, covert network of ships, often referred to as a “shadow fleet,” to conceal and transport goods worth billions of dollars to China.
This clandestine operation allows Iran to circumvent international sanctions and maintain a steady flow of trade with China, a crucial economic partner.
The shadow fleet typically consists of older vessels with obscured ownership and flags of convenience, making it difficult to track and trace their activities.
This elaborate scheme highlights the lengths to which Iran is willing to go to maintain its economic and military ties with China, despite facing significant international pressure and scrutiny.
Exports rose during the previous US regime
Iran’s oil exports experienced a significant surge during the presidency of Joe Biden.
This increase can be attributed to several factors, including the Biden administration’s less stringent enforcement of sanctions against Iran compared to the Trump administration, as well as increased global demand for oil due to the easing of COVID-19 restrictions and the ongoing conflict in Ukraine.
This rise in exports has provided a crucial economic lifeline to Iran, which has been grappling with severe economic sanctions imposed by the US.
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