The United States government announced today that it has imposed sanctions on 35 entities and vessels involved in the illicit transportation of Iranian goods. The move aims to impose additional costs on Iran's oil sector, which is a major source of revenue for the country's controversial nuclear program, advanced weapons development and support for regional terrorist groups.
These sanctions follow an attack by Iran on Israel on October 1, 2024 and Iran's subsequent nuclear escalations. They build on previous sanctions issued on October 11, 2024. Bradley T. Smith, Acting Under Secretary for Terrorism and Financial Intelligence, said: “The United States remains committed to disrupting the ghost fleet of ships and “operators who facilitate these illicit activities, using the full range of our tools and authorities.”
The sanctions are enacted under Executive Order 13902, which grants the Secretary of the Treasury, in consultation with the Secretary of State, the authority to target key sectors of the Iranian economy. The Office of Foreign Assets Control (OFAC) has also issued guidance to help the maritime industry identify and prevent sanctions evasion.
Sanctioned entities include a network of tankers and ship management companies across multiple jurisdictions known to use deceptive practices such as manipulating vessel tracking systems, changing vessel names and using false documents. Among the named vessels are the Marshall Islands-flagged JAYA, the Guyana-flagged PHONIX, and the Cook Islands-flagged BERTHA, among others.
Several companies managing these vessels have been designated under the executive order, including Galileos Marine Services LLC based in the United Arab Emirates, Ocean Glory Giant OGG SA based in Panama, Vision Ship Management LLP based in India, and others. These entities are accused of managing ships that transported Iranian oil, circumventing sanctions by various means.
The sanctions result in the blocking of all U.S. assets held by these entities and generally prohibit all transactions involving these entities by U.S. persons or within the territory of the United States. Enforcement of these sanctions could also result in penalties for U.S. persons who violate them and for non-U.S. persons who attempt to induce U.S. persons to engage in sanctioned activities.
OFAC emphasizes that the objective of these sanctions is not punitive but aims to encourage a change in behavior. The agency also outlines the process for entities seeking removal from the sanctions list, which is conditioned on a change in conduct consistent with U.S. law and policy.
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