The US Escalates Crackdown on Iran’s Shadow Oil Trade with New Sanctions

The United States has intensified its efforts to combat Iran’s illicit oil trade by imposing extensive sanctions on numerous entities and vessels involved in the illegal transportation and sale of Iranian oil. These actions have targeted networks that engage in deceptive practices to evade international sanctions, with some of the proceeds directly benefiting the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).

The Office of Foreign Assets Control (OFAC), a division of the US Department of the Treasury, has focused on dismantling networks responsible for blending, disguising, and smuggling Iranian oil to circumvent sanctions. One key figure in this operation is Salim Ahmed Said, a dual Iraqi-British national, who has orchestrated a complex network of companies involved in relabelling Iranian oil as Iraqi crude. Said’s operations, as per OFAC, relied on falsified documentation, bribes to Iraqi officials, and the utilization of UAE-based companies like VS Tankers (formerly AISSOT) to transport Iranian oil through Iraq and onto the global market.

According to OFAC, Said’s companies routinely mixed Iranian and Iraqi oil, using forged vouchers issued by corrupt officials to deceive buyers. The oil was then sold internationally, including in Western markets, under the guise of legitimate Iraqi exports.

Among the vessels sanctioned in this crackdown is the Marshall Islands-flagged Dijilah, owned and operated by VS Tankers, which engaged in ship-to-ship transfers with the US-sanctioned Casanova earlier this year in the Persian Gulf. Additionally, VS Oil Terminal in Khor al-Zubayr, Iraq, linked to Said, played a crucial role in blending oil stocks and smuggling hard currency back into Iran.

Other sanctioned entities associated with Said include VS Petroleum, Rhine Shipping, The Willett Hotel, and Robinbest, all identified as controlled by Said. The sanctions also target Iran’s global shadow fleet, including vessels like the Vizuri, Fotis LPG carrier, Themis, and Bianca Joysel, which facilitated the covert movement of millions of barrels of sanctioned oil primarily to Asia through ship-to-ship transfers.

Moreover, Singapore-based Trans Arctic Global Marine Services was sanctioned for arranging piloting services for Iranian vessels through the Strait of Malacca, aiding in the transit of tens of millions of barrels of oil in violation of sanctions.

The IRGC-QF was singled out for utilizing front companies to generate oil revenue, with the Al-Qatirji Company playing a role in facilitating oil movements through vessels like the Elizabet, Atila, and Gas Maryam. These vessels engaged in deceptive practices such as impersonation, clandestine transfers, and mislabeling Iranian oil as originating from other countries.

Secretary of the Treasury Scott Bessent emphasized the US government’s commitment to disrupting Tehran’s revenue sources and intensifying economic pressure to curb Iran’s destabilizing activities. These recent sanctions mark the eighth round of measures targeting Iran’s oil trade since President Trump’s directive to apply maximum pressure on Tehran.

President Trump’s National Security Presidential Memorandum 2 reaffirms the administration’s stance on countering Iran’s illicit activities, and these latest sanctions underscore the US’s determination to address Iran’s rogue behavior in the global oil market.