In a move to intensify pressure on Tehran, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced sanctions targeting nearly two dozen entities across multiple international jurisdictions involved in Iran’s illicit oil trade.
The Treasury asserts that the Iranian government utilizes billions of dollars generated from these oil sales to support its armed forces, including the development of ballistic missiles and unmanned aerial vehicles, as well as to finance regional terrorist groups.
According to the Treasury, Iran’s Armed Forces General Staff (AFGS) and its key commercial affiliate, Sepehr Energy Jahan Nama Pars Company (Sepehr Energy), are orchestrating a complex network of front companies, buyers, and facilitators to circumvent existing sanctions and sustain their oil exports. This action marks the 19th such measure taken by the current administration against Tehran and its proxies, resulting in sanctions on 253 individuals, entities, and vessels.
READ: Donalds’ Due Process Stance Triggers AOC Fundraising Amid Accusations Of Neglecting Constituents
“Today’s action underscores our continued focus on intensifying pressure on every aspect of Iran’s oil trade, which the regime uses to fund its dangerous and destabilizing activities,” stated Secretary of the Treasury Scott Bessent. “The United States will continue targeting this primary source of revenue, so long as the regime continues its support for terrorism and proliferation of deadly weapons.”
The sanctions were imposed under counterterrorism authority Executive Order (E.O.) 13224, as amended, and align with National Security Presidential Memorandum-2, which mandates maximum economic pressure on the Iranian regime. OFAC had previously designated Sepehr Energy in November 2023 for providing support to Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), which itself was designated in 2019 for supporting the Islamic Revolutionary Guard Corps-Qods Force.
The Treasury detailed how Sepehr Energy employs a web of front companies, often based in Hong Kong, to broker and receive shipments of Iranian oil destined for independent refineries in China, known as “teapot refineries.” These transactions are designed to create the illusion of legitimate trade between separate entities.
Specifically, OFAC named Hong Kong-based Xin Rui Ji Trad Co., Limited, Star Energy International Limited, and Milen Trading Co., Limited as entities controlled by Sepehr Energy and its officials, including sanctioned individual Elyas Nirumand Toomaj. Star Energy alone has reportedly moved tens of millions of dollars on behalf of Sepehr Energy.
READ: Inflation Eases To Over Three-Year Low In April, Despite Tariff Concerns
The Treasury highlighted an instance where Puyuan Trade Co., Limited, another previously designated Sepehr Energy front, delivered multiple shipments of Iranian oil to Xin Rui Ji in China. Puyuan also leased storage tanks in China to hold these cargoes before final delivery.
The U.S. Treasury is also targeting entities in China that facilitate the sale and movement of this illicit oil. CCIC Singapore PTE. Ltd. and its China-based sister company, Huangdao Inspection and Certification Co., Ltd, were sanctioned for allegedly providing inspection services that helped conceal the Iranian origin of the oil through ship-to-ship transfers and falsified documents.
Furthermore, Qingdao Linkrich International Shipping Agency Co., Ltd, based in Shandong province, a hub for teapot refineries, was designated for assisting Sepehr Energy-chartered vessels with port operations.
Several Hong Kong and Singapore-based companies, including Metaone Trading Limited, South Sea Energy Limited, Continental Sinoil Group Limited, Winso Trading Limited, and Oriental Apple Company PTE Ltd, were identified as acting as intermediaries, taking delivery of millions of barrels of Iranian oil from Sepehr Energy fronts, likely on behalf of the Chinese refineries. Qingdao Fushen Petrochemical Co., Ltd, a China-based agency, was also sanctioned for purchasing significant amounts of oil from Sepehr Energy front companies.
READ: Florida Gov. DeSantis Urges Ohio Lawmakers To Support Congressional Term Limits
The Treasury also highlighted the continued reliance of Iran’s AFGS and Sepehr Energy on a “shadow fleet” of aging oil tankers to transport their oil. The Cameroon-flagged BALU and the Panama-flagged ROC, along with Hong Kong-based maritime operator Nanhai Limited, were specifically named for facilitating these shipments to China.
As a consequence of these designations, all property and interests in property of the sanctioned individuals and entities within the United States or controlled by U.S. persons are blocked and must be reported to OFAC. U.S. persons are generally prohibited from engaging in any transactions with these blocked entities. Violations of U.S. sanctions can lead to civil or criminal penalties.
The Treasury also warned that foreign financial institutions engaging in significant transactions with these designated entities risk exposure to secondary sanctions, potentially impacting their access to the U.S. financial system.
This latest action underscores the U.S. commitment to disrupting Iran’s oil revenue streams, which it views as a critical component of the regime’s ability to fund its military ambitions and support destabilizing activities in the region. The Treasury emphasized that these sanctions are not intended as punishment but aim to compel a change in Iran’s behavior.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
