US imposes sanctions on network facilitating Iranian oil shipments to China

The U.S. Treasury Department has imposed sanctions on an international network allegedly involved in facilitating the shipment of Iranian oil to China, targeting entities and individuals in China, India, and the United Arab Emirates, along with several vessels.

According to the Treasury Department, the sanctioned network has enabled the shipment of millions of barrels of Iranian oil valued at hundreds of millions of dollars on behalf of Iran’s Armed Forces General Staff and Sepehr Energy, a front company used for oil transactions, Caliber.Az reports via foreign media.

The move follows a memorandum signed two days earlier by former President Donald Trump, reinstating a “maximum pressure” campaign aimed at curtailing Iran’s oil exports. The directive ordered the Treasury and State Departments to take action to drive Iran’s crude exports to zero.

Treasury Secretary Scott Bessent accused Iran of using oil revenue to finance the development of its nuclear program, ballistic missile production, unmanned aerial vehicles, and support for militant groups across the Middle East. Iran, however, denies seeking nuclear weapons.

“The United States is committed to aggressively targeting any attempt by Iran to secure funding for these malign activities,” Bessent said in a statement.

The sanctions target multiple companies, including India-based Marshal Ship Management Private Limited, which has offices in the UAE, as well as Hong Kong-based Ocean Dolphin Ship Management and Gozoso Group. Other sanctioned entities include Seychelles-based Miletus Line and Umbra Navi Ship Management Corp., which is registered in the Seychelles but operates out of Kazakhstan. Several subsidiaries of Sepehr Energy and their executives have also been blacklisted.

Following the announcement, U.S. crude oil and global benchmark Brent futures saw a modest increase of less than 1% in late-morning trading on February 6.

By Vugar Khalilov