US sanctions target Iran’s ‘shadow fleet’ with new measures

The US Treasury Department has expanded its crackdown on Iran’s oil and petrochemical shipping network, imposing sanctions on six individuals, 27 companies, and 22 vessels. The department said the new measures would disrupt a significant portion of the activities of the so-called ‘shadow fleet,’ which continues to transport Iranian oil and petrochemical products to foreign markets.

The Treasury explained that the sanctions target the routes Iran uses to evade restrictions and sustain its petrochemical sector, as well as to provide resources to entities destabilizing the region. The network relies on tankers that ship oil and petrochemical products abroad.

According to the official list released by the Office of Foreign Assets Control (OFAC) on Thursday, October 8, the sanctions include five Indian nationals and one Turkish national, along with 10 companies and five vessels under Executive Order 13846, and 17 companies and 17 vessels under Executive Order 13902.

In a parallel move, OFAC removed the vessels ‘Hakuna Matata’ and ‘Pinocchio’ from the sanctions list, explaining that this was due to their departure from the ‘shadow fleet’ and their sale to operators not subject to sanctions and compliant with US regulations.

The Treasury Department noted that the composition of the ‘shadow fleet’ is constantly changing as new vessels join and others leave, adding that it will continue to monitor, identify, and disrupt attempts to circumvent sanctions.