Important News

U.S. Sanctions Eight Entities and Nine Vessels in Iran "Shadow Fleet" Over Illicit Petroleum Shipments

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Key takeaways

  • The U.S. Department of the Treasury sanctioned eight entities and nine vessels tied to Iran’s so-called "shadow fleet."
  • Sanctioned actors are accused of shipping hundreds of millions of dollars’ worth of Iranian petroleum and petroleum products, including liquefied petroleum gas (LPG).
  • The action is intended to restrict Iran’s ability to export petroleum through obscure or fraudulent mechanisms and to reduce revenues that fund repression and foreign malign activity.
  • The measures are taken pursuant to Executive Order 13902 and implement the White House's National Security Presidential Memorandum 2 (NSPM-2), which directs maximum pressure on the Iranian regime.
  • The Treasury’s press release contains further details and the specific list of sanctioned entities and vessels.

Follow Up Questions

What is National Security Presidential Memorandum 2 (NSPM-2) and what does it direct?Expand

NSPM‑2 (National Security Presidential Memorandum 2), issued Feb 4, 2025, directs a U.S. “maximum pressure” policy on Iran: deny Iran all paths to a nuclear weapon, curtail its missile and malign regional activities, and—by directing agency action—drive Iranian oil exports toward zero, tighten sanctions enforcement, rescind or modify waivers, strengthen export controls, and coordinate diplomatic isolation of Iran.

What does Executive Order 13902 cover and how does it authorize sanctions?Expand

Executive Order 13902 (Jan 10, 2020) authorizes blocking (asset‑freezing) and U.S. sanctions targeting persons operating in specified Iranian sectors (including later determinations covering petroleum/petrochemicals). It is issued under IEEPA and the National Emergencies Act and authorizes the Secretary of the Treasury to block property, impose restrictions on foreign financial institutions (correspondent/payable‑through accounts), and promulgate implementing regulations and licensing guidance.

What is meant by Iran’s "shadow fleet" and how do these vessels evade detection or sanctions?Expand

Iran’s “shadow fleet” is a set of tankers and LPG/commodity vessels used to disguise Iranian oil and gas exports—by turning off AIS tracking, changing ship names/registry, ship‑to‑ship transfers, false documentation, and use of front companies and deceptive commercial paperwork—to evade sanctions and detection.

Which specific entities and vessels were sanctioned and where can I find the full list?Expand

The U.S. action on Jan. 23, 2026 sanctioned eight entities and nine vessels; the full, named list is in the Treasury/OFAC press release and sanctions list accompanying the announcement (see Treasury/OFAC press release and the State Department statement for links).

How might these sanctions affect the availability or price of petroleum products, including LPG, for Iranians and international markets?Expand

Effects are likely limited but measurable: U.S. secondary sanctions on shadow‑fleet traders can reduce Iran’s export channels, tightening supply that can raise short‑term price risk for specific cargoes (and LPG) and make procurement harder for Iranian domestic markets; broader global price effects depend on existing spare capacity, alternative suppliers (e.g., Russia/Saudi/Emirates), and buyer behavior—most analysts expect localized shortages and higher costs for Iranians, and only modest, temporary global price impact unless sanctions cascade.

What enforcement tools and penalties does the Department of the Treasury use to implement these sanctions and deter third-party facilitation?Expand

Treasury/OFAC enforces EO 13902 sanctions using tools such as: designation and listing on OFAC’s SDN/blocked‑persons lists (blocking U.S. property and prohibiting U.S. persons from dealing with listed parties); secondary sanctions targeting foreign financial institutions (correspondent/payable‑through account restrictions); fines, asset seizures, criminal referrals to DOJ, penalties for sanctions‑evasion facilitation, and guidance/industry advisories (shipping, insurance, ports) to deter third‑party facilitation.

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