U.S. Sanctions "Ghost Fleet" Transporting Iranian Oil After Missile Attack On Israel

Oil Tankers — Image for representation purposes only

The U.S. has announced an increase in sanctions on Iran’s petroleum and petrochemical sectors after an Iranian missile attack on Israel on October 1, the country’s second direct strike this year.

The U.S. government aims to cut off Tehran’s financial resources, which it uses to pay for its nuclear and missile projects, regional destabilization, and support for terrorist groups.

This new set of sanctions, imposed under Executive Order 13902, focuses on Iran’s key economic sectors, including oil and petrochemicals. This allows the U.S. Treasury Department to sanction individuals and companies involved in these sectors.

A senior U.S. official said the sanctions are intended to disrupt Iran’s ability to generate revenue from its energy sector. The sanctions also target the “Ghost Fleet,” a network of oil tankers that transport Iranian oil under the radar.

National Security Adviser Jake Sullivan said these sanctions aim to stop Iran from funding missile projects and providing support to groups that threaten the United States and its allies.

In another statement, Israel vowed to take action against Iran for the missile attack, which Iran alleges was in response to Israeli attacks on Lebanon and Gaza.

The United States Treasury Department has blacklisted 16 companies and identified 17 vessels involved in illegal oil and petrochemical shipments from Iran. These sanctions are meant to disrupt Iran’s oil trade, especially with China, the country’s largest consumer of crude oil.

Despite these restrictions, Iran’s oil exports have increased greatly under President Biden’s administration.

The Eurasia Group, a risk consultancy group, proposed that the United States could impose stricter monitoring of Iranian oil imports, possibly using satellite imaging to track tankers that deactivate their transponders.

However, stricter sanctions enforcement may need diplomatic pressure on countries like Malaysia and the UAE, which are hesitant to take action against Iranian interests.

The United States has also imposed sanctions on six companies and six vessels involved with major petroleum trading with Iran under the Stop Harboring Iranian Petroleum (SHIP) Act.

The National Iranian Oil Company (NIOC) and Triliance Petrochemical Co., both previously sanctioned, were once again targeted for their support for Iran’s Revolutionary Guard and terrorist networks.

U.S. Treasury Secretary Janet Yellen said that the latest sanctions show the country’s commitment to blocking Iran’s disruptive activities, including missile development and support for regional proxies.

The United States is prepared to take further actions if required to counter Iran’s hostile behaviour in the region.

References: U.S. Treasury, Reuters

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