The Trump administration is ramping up its economic pressure campaign against Iran, sanctioning over 50 individuals, entities, and vessels involved in Tehran’s oil and liquefied petroleum gas (LPG) trade that has generated billions in revenue for the regime and its proxies.
The U.S. Treasury Department announced the sweeping sanctions on Thursday, targeting a complex network that spans multiple countries and has been crucial to Iran’s ability to circumvent existing restrictions on its petroleum exports.
Choking Off Iran’s Cash Flow
Secretary of the Treasury Scott Bessent didn’t mince words about the administration’s objectives. “The Treasury Department is degrading Iran’s cash flow by dismantling key elements of Iran’s energy export machine,” Bessent stated. “Under President Trump, this administration is disrupting the regime’s ability to fund terrorist groups that threaten the United States.”
The sanctions target what officials describe as a “network moving hundreds of millions of dollars’ worth of Iranian LPG,” alongside nearly two dozen shadow fleet vessels, a China-based crude oil terminal, and an independent “teapot” refinery — all critical components of Iran’s petroleum export infrastructure.
What exactly does this shadow fleet look like? It’s a sophisticated operation involving vessels like GAS DIOR, MAX STAR, SEA OPERA, TULIP, and ADA that have transported Iranian petroleum products to markets in China, Sri Lanka, Bangladesh, and Yemen. The SEA OPERA vessel alone has moved more than a million barrels of Iranian petroleum products to China since mid-2022.
UAE and Hong Kong Connections
At the center of this network are UAE-based companies Markan White and Slogal Energy, along with several Hong Kong-based shell companies that have facilitated tens of millions to over $100 million in LPG payments and shipments from Iran to countries like Sri Lanka and Bangladesh.
The Treasury designated numerous companies for their operations in Iran’s petroleum sector, including Amita Petrochemical, Markan White Trading Crude Oil Abroad, Slogal Energy DMCC, Aerilyn Shipping, S E A Ship Management, Yu Hong De Company, and Juliet Trading Limited.
But perhaps most notable is the action against Chinese entities. A major Chinese refinery, Shandong Jincheng Petrochemical, has purchased millions of barrels of Iranian oil since 2023, delivered by shadow fleet vessels — including some previously sanctioned tankers. Meanwhile, the Rizhao Shihua Crude Oil Terminal in China has accepted more than a dozen shadow fleet vessels transporting several million barrels of Iranian oil.
Shell Games and Maritime Deception
How does Iran manage to sell its oil despite international sanctions? Through elaborate obfuscation tactics, it seems.
Iran’s shadow fleet employs various disguise methods and relies on services from companies in China, Singapore, and elsewhere to mask the origin of their cargoes. Iranian exporters frequently transfer petroleum between shadow fleet vessels — sometimes with the help of tugboats — in the Persian Gulf and in waters off the coast of Singapore and Malaysia.
The sanctions cast a wide net across the global maritime industry, designating shipping agencies and companies registered in China, Marshall Islands, India, Liberia, Panama, Hong Kong, UAE, and Singapore for their roles in transporting Iranian oil and LPG, along with their vessels.
Even individuals haven’t escaped Treasury’s notice. Varun Pula, Soniya Shrestha, and Iyappan Raja were designated for acting on behalf of shipping firms involved in the Iranian petroleum trade.
Consequences and Enforcement
The practical effect of these sanctions is substantial. All property and interests in property of the designated persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. U.S. persons are generally prohibited from transactions with designated entities, and violations may result in civil or criminal penalties.
This marks one of the most extensive sanction packages against Iran’s energy sector since the Trump administration returned to office, underscoring the renewed “maximum pressure” approach that characterized the president’s first term.
For Iran, which has increasingly relied on these shadow networks to keep its economy afloat amid international isolation, the sanctions represent a significant threat to a vital revenue stream — one that Tehran has long used to fund regional proxies and military operations across the Middle East.
