US Plans To Stop, Inspect & Seize Iranian Oil Tankers To Cut Off Its Revenue

The United States is planning to stop, inspect and seize Iranian oil tankers at sea in a renewed approach to cut off Tehran’s oil revenue.

This move, backed by President Donald Trump’s administration, aims to impose stricter sanctions on Iran and block its crude exports, according to sources familiar with the discussions.

The proposal involves conducting ship inspections in international waters under the Proliferation Security Initiative (PSI), an international framework designed to prevent the spread of weapons of mass destruction.

U.S. officials are finding new ways to come together with allied nations to stop Iranian tankers in critical maritime routes, including the Malacca Strait in Southeast Asia.

Since returning to office, Trump has reinstated his “maximum pressure” campaign on Iran. In the early weeks of his second term, his administration imposed two rounds of fresh sanctions, targeting companies involved in Iranian oil transportation and the so-called “shadow fleet”-a network of aging, uninsured vessels that continue to carry crude from sanctioned countries.

Washington hopes to create an uncertainty in the market and deter refiners from purchasing Iranian crude. Sources familiar with the matter have said that this could greatly impact Iran’s revenue, which is heavily dependent on oil exports.

A former US official involved in establishing the PSI stated that using the initiative to disrupt Iran’s oil shipments would be justified.

Iranian President Masoud Pezeshkian recently addressed his country’s parliament, stating that Trump’s new sanctions have left several Iranian oil tankers in limbo, uncertain about where they can offload their cargo.

Meanwhile, Iran’s foreign and oil ministries have not commented on the proposed US actions.

Under Biden administration in 2023, US forces tried to confiscate at least two shipments of Iranian crude. In response, Iran seized foreign vessels, including one chartered by Chevron Corp, causing global oil prices to surge.

Experts estimate that this move could immediately reduce Iran’s oil exports by approximately 750,000 barrels per day. They also believe that over time, Iran and its trading partners mainly China will develop new methods to bypass these restrictions.

According to the US Energy Information Administration, Iran generated $53 billion from oil exports in 2023 and $54 billion in 2022, with most sales directed toward China. Meanwhile, European nations have expressed concern about oil tankers operating near their waters.

Nordic countries, in particular, have warned about environmental risks posed by uninsured ships, including the possibility of oil spills near their coastlines.

References: Reuters, TASS

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