The US Treasury Department on Tuesday imposed sanctions on a network of shipping companies and vessels accused of smuggling Iranian oil disguised as Iraqi crude, Reuters reports.
The network, led by a businessman holding dual citizenship in Iraq and St. Kitts & Nevis and operating out of the United Arab Emirates, allegedly blended Iranian oil with Iraqi oil to circumvent American sanctions.
According to the Treasury, the businessman managed the scheme through Babylon Navigation DMCC, one of two UAE-based companies under his control. Several Liberia-flagged tankers - Adena, Liliana, and Camilla - were identified as assets used to carry out ship-to-ship transfers in the Arabian Gulf and at Iraqi ports.
Treasury Secretary Scott Bessent emphasized the strategic intent behind the sanctions: “By targeting Iran’s oil revenue stream, Treasury will further degrade the regime’s ability to carry out attacks against the United States and its allies.”
He added, “We remain committed to an oil supply free from Iran and will continue our efforts to disrupt the ongoing attempts by Tehran to evade US sanctions.”
The Treasury also sanctioned several Marshall Islands-based companies—Tryfo Navigation, Keely Shiptrade Limited, Odiar Management S.A., Panarea Marine S.A., and Topsail Shipholding Inc.—which it said served as registered owners of the vessels, likely to obscure the businessman’s control.
The Trump administration continues to exert economic pressure on Tehran amid stalled nuclear negotiations.
Last month, the Treasury imposed sanctions on 18 individuals and entities connected to the Iranian regime's efforts to bypass international sanctions and fund illicit activities. The sanctions, carried out by the Office of Foreign Assets Control (OFAC), target actors involved in financial, banking, and surveillance operations.
The nuclear talks between the US and Iran were suspended following the 12-day war in June. Ali Larijani, Secretary of Iran’s Supreme National Security Council, stated on Tuesday that the path to negotiations remains open, but US demands regarding Iran’s missile program are hindering progress.