US sanctions shippers facilitating Iran oil trade, target Supreme leader family entities

The United States has sanctioned entities from China, India, Turkey, and the UAE for transporting and purchasing Iranian petroleum and petrochemical products. These sanctions, issued under the US President’s Executive Order 13846, reimpose certain restrictions on Iran.
At the same time, the Department of the Treasury is targeting more than 115 entities within the extensive shipping empire and sanctions evasion network of Hossein Shamkhani, who is the son of Ali Shamkhani, the Supreme Leader’s political advisor.
According to a statement by the Department of State, this decision aims to cut off revenue streams that the “Iranian regime uses to support terrorism abroad and oppress its own people.”
“The Department of State has imposed sanctions on 20 entities engaged in Iranian petroleum, petroleum products, or petrochemical trade, and has identified 10 vessels as blocked property,” said the statement attributed to a spokesperson.
“The targeted entities include vessel management companies, a petroleum wholesale company, and various intermediaries involved in the transport and purchase of Iranian petroleum and petrochemical products.”
The sanctioned entities include Etihad Engineering and Marine Services (ETIHAD), Faradanesh Technical Inspection Services Company (FIS), Arzo Altejara For Goods Wholesalers (ARZO), and Ensa Ship Management Private Limited (ENSA). Peace Worth Shipping (PEACE WORTH) and Avani Lines Inc. (AVANI) complete the list of six sanctioned companies.
These companies facilitated the movement of millions of barrels of Iranian crude oil and petrochemical products through deceptive shipping practices. The blocked vessels include Seaturbo, Trugen, Seabass, Seahaker, Zeal, Molly, Sofia, Courage, Tifani, and Tonda Source.
“All property and interests in property of the designated entities that are in the United States or in the possession or control of US persons are blocked and must be reported to the Department of Treasury’s Office of Foreign Assets Control. Transactions involving these entities are prohibited unless authorized by OFAC.”
How were the entities involved
Etihad: Engaged in a significant transaction for the transportation of Iranian petroleum products when a vessel it manages, Seaturbo, loaded Iranian reformate in Iran in September 2022. Etihad also manages several other tankers, including Trugen, Seabass, Seahaker, Zeal, Molly, Sofia, and Courage 7, which have collectively transported Iranian petroleum products multiple times since May 2023.
FIS: Acted as the cargo surveyor for the Seaturbo transaction of September 2022, certifying that the cargo was loaded onto a tanker for export. FIS is an Iran-based cargo inspection and surveyor company that operates in multiple Iranian ports and inspects commodities such as oil, oil derivatives, chemical and petrochemical products, and gas.
ARZO: Involved in the purchase of petroleum products from Iran between late April and early May 2024, when it purchased approximately 10,000 metric tons of fuel oil from the National Iranian Oil Company.
ENSA: Has been the commercial manager of the vessel Tifani since December 2024, overseeing the loading of Iranian petroleum twice through ship-to-ship transfers with US-designated Iranian-flagged tankers in the Singapore EOPL while conducting dark activity.
Peace Worth: A China-registered company that manages the Panama-flagged chemical/oil products tanker Tonda Source, which loaded Iranian-origin methanol in October 2022 and discharged its cargo in China. The vessel has also conducted multiple loadings of Iranian-origin petrochemical products from 2022 to 2024.
AVANI: The registered owner and commercial manager of a vessel that conducted at least six voyages for the transport of Iranian-origin crude oil, cargo which was sequentially loaded through ship-to-ship transfers with sanctioned tankers, including National Iranian Tanker Company tankers, and discharged in China.
What the sanctions mean for global trade
The sanctions on entities involved in the Iranian petroleum trade have far-reaching implications for global trade, affecting supply chains, compliance costs, market stability, shipping logistics, geopolitical dynamics, and the economic well-being of the sanctioned entities.
These sanctions imposed have significant implications for global trade, especially at a time when the world is coming to terms with challenges occasioned by President Donald Trump’s tariffs.
Disruption of Supply Chains: The sanctions target entities and vessels that facilitate the movement of Iranian petroleum and petrochemical products. By blocking these entities and vessels, the US aims to disrupt the supply chains that enable Iran to export its oil and petrochemical products. This disruption can lead to a decrease in the availability of these products in the global market, potentially causing fluctuations in prices and supply shortages.
Increased Compliance Costs: Companies involved in the global trade of petroleum and petrochemical products must ensure they are not engaging with sanctioned entities or vessels. This requires enhanced due diligence and compliance measures, which can increase operational costs. Companies may need to invest in additional resources to monitor their supply chains and ensure compliance with US sanctions.
Market Uncertainty: The imposition of sanctions creates uncertainty in the market, as companies may be hesitant to engage in transactions that could potentially violate US sanctions. This uncertainty can lead to reduced investment and trade activities, as companies seek to avoid the risk of penalties and reputational damage.
Impact on Shipping and Logistics: The sanctions specifically target vessel management companies and vessels involved in the transport of Iranian petroleum products. This can lead to a reduction in the number of available vessels for transporting these products, potentially causing delays and increased shipping costs. Additionally, vessels that have been identified as blocked property may face restrictions on their movements, further complicating logistics and trade operations.
Geopolitical Tensions: The sanctions are part of broader efforts by the US to exert pressure on Iran and curb its revenue sources. This can lead to increased geopolitical tensions, particularly in regions where Iran has significant influence. These tensions can impact global trade routes, particularly those in the Middle East, and may lead to increased security risks for vessels and trade operations in the region.
Economic Impact on Sanctioned Entities: The sanctioned entities themselves face significant economic challenges because of the sanctions. Their assets in the US are blocked, and they are prohibited from engaging in transactions with people or entities in the United States. This can lead to financial losses, reduced business opportunities, and potential insolvency for some of these entities.
How the sanctions affect specific countries
While these sanctions have a direct effect on at least the cited countries, namely India, China, the UAE, and Turkey, due to the indicted entities being from their jurisdiction, there is a strong ripple effect on countries that deal in oil and petroleum products whose origin is Iran, with the potential to extend to other countries.
China: Significantly impacted by these sanctions, as it is a major importer of Iranian crude oil and petrochemical products. Several crude oil terminal operators are believed to heavily rely on multiple shipments of Iranian crude oil.
United Arab Emirates: Affected due to its involvement in the trade of Iranian petroleum and petrochemical products. At least four of the six indicted entities are based in the UAE. It remains to be seen how this will affect the structure of these companies’ financial and structural bottom lines.
India, Turkey, and Indonesia: Impacted by the sanctions as they have several companies in the petroleum sector value chain that import or purchase Iranian-origin petrochemical products for sale in the local market.
From the foregoing that the impact of these sanctions is far-reaching. They disrupt supply chains, leading to potential fluctuations in prices and supply shortages of Iranian petroleum products in the global market.
How the sanctions will affect geopolitics
Companies involved in the trade of these products, directly or otherwise, must enhance their due diligence and compliance measures, which would potentially lead to an increase in operational costs. The uncertainty created by the sanctions can reduce investment and trade activities, as companies seek to avoid the risk of penalties and reputational damage.
Shipping and logistics are also affected, with a reduction in the number of available vessels for transporting Iranian petroleum products, causing delays and increased shipping costs.
Geopolitical tensions may rise, particularly in regions where Iran has significant influence, impacting global trade routes and increasing security risks for vessels and trade operations.
The sanctioned entities face significant economic challenges, including financial losses, reduced business opportunities, and potential insolvency. Countries like China, the UAE, India, Turkey, and Indonesia are directly affected due to their involvement in the Iranian petroleum trade.
Overall, the sanctions underscore the complex interplay between international trade, geopolitics, and economic stability.
They highlight the need for companies and countries to navigate these challenges carefully to mitigate the impact on global trade and maintain compliance with international regulations.
Human Rights abuses
Meanwhile, Secretary of State Marco Rubio has announced the sanctioning of Brazilian Supreme Court Justice Alexandre de Moraes for Serious Human Rights abuses.
In a statement, Rubio said the violations included arbitrary detention involving flagrant denials of fair trial guarantees and infringing on freedom of expression.
“Moraes abused his position by authorizing unjust pre-trial detentions and undermining freedom of expression,” he said in the statement.
“Moraes further abused his authority by engaging in a targeted and politically motivated effort designed to silence political critics through the issuance of secret orders compelling online platforms, including US social media companies, to ban the accounts of individuals for posting protected speech.”