In what officials described as the most sweeping Iran-related sanctions action since 2018, the US Department of the Treasury on Wednesday announced more than 115 designations targeting individuals, companies, and vessels linked to a sprawling Iranian shipping network accused of generating billions in profits for Tehran.
The move, carried out by the Office of Foreign Assets Control (OFAC), centers on a network run by Mohammad Hossein Shamkhani, the son of top Iranian regime advisor Ali Shamkhani. According to the Treasury, Hossein leveraged his father’s influence to build a vast fleet of oil tankers and cargo ships transporting crude from Iran and Russia to global buyers, funneling proceeds back to the regime.
"The Shamkhani family’s shipping empire highlights how the Iranian regime elites leverage their positions to accrue massive wealth and fund the regime’s dangerous behavior," said US Treasury Secretary Scott Bessent. "These actions put America first by targeting regime elites that profit while Tehran threatens the safety of the United States."
Wednesday's sanctions were issued under Executive Order 13902, part of the Trump Administration's framework for exerting maximum economic pressure on Iran. OFAC also coordinated with the Treasury’s Financial Crimes Enforcement Network (FinCEN) and the Department of State, which concurrently blocked 20 entities and 10 vessels.
The targeted network reportedly uses front companies and alias-based dealings to conceal its involvement in illicit trade, including shipping petroleum to China and, in some cases, delivering weapons components from Iran to Russia in exchange for oil. Dozens of UAE-based firms played central roles in managing the network's assets.
Among the network’s key companies are Marvise SMC DMCC, Crios Shipping L.L.C., Armada Global Shipping DMCC, and Progwin Shipping SA. These firms operate and manage dozens of tankers and containerships, often reassigning vessel operators to obscure ownership.
Entities such as Ocean Leonid Investments Ltd and Milavous Group Ltd were highlighted for laundering billions in oil revenue. The web of affiliated companies spans the UAE, Cyprus, Switzerland, Turkey, Singapore, and the Marshall Islands.
Several network members used offshore shell firms to operate ships under various flags, including Liberia, Panama, and Saint Vincent and the Grenadines. Vessels such as the BIGLI, ACE, and TRIS GAS were identified as having engaged in sanctioned trades or deceptive shipping practices, including disabling transponders and falsifying documentation.
Key individuals designated include Hossein Shamkhani himself, Alireza Derakhshan, and Pankaj Nagjibhai Patel, among others, for their roles in managing or facilitating the network’s operations. The designations also target dozens of vessels used in oil and cargo transport.
All US persons are now prohibited from conducting transactions with the designated parties. Any property or interests of those sanctioned under US jurisdiction are now blocked and must be reported to OFAC. Entities owned 50% or more by blocked persons are also automatically sanctioned.
The Treasury warned that foreign persons engaging with the designated entities may also face secondary sanctions, reiterating the Biden Administration's commitment to countering Iran's illicit financial activities worldwide.
A full list of designated individuals, companies, and vessels was published in an annex accompanying the Treasury’s statement.