US targets Iran’s LPG exports in expanded sanctions campaign

The United States has intensified its economic pressure campaign on Iran by expanding sanctions to include the Islamic Republic’s liquefied petroleum gas (LPG) exports, marking a significant shift in Washington’s focus beyond Iranian crude oil shipments.

On April 22, the US Department of the Treasury imposed sanctions on Seyed Asadoollah Emamjomeh, an Iranian national involved in shipping both LPG and crude oil from Iran to international markets, Caliber.Az reports, referring to foreign media.

The sanctions also target his trading companies, an LPG tanker, and his son, Meisam Emamjomeh. This marks an escalation in Washington’s measures against individuals and entities facilitating Iran’s non-crude energy trade.

The US Treasury stated that LPG is a critical revenue stream for Tehran, and the Iranian government uses proceeds from these exports to finance its nuclear program and to support regional proxy groups, including Hezbollah, the Houthis, and Hamas. The sanctions are part of a broader strategy to curtail Iran’s funding sources as Washington seeks leverage in ongoing diplomatic efforts.

Meanwhile, Iran and the US have resumed indirect talks over Tehran’s nuclear program. Iranian officials have reportedly requested guarantees that sanctions will be lifted if the country meets certain conditions, as part of efforts to address Washington’s concerns over nuclear enrichment and weapons development.

One of the most significant buyers of Iranian LPG is China. According to data from the US Energy Information Administration (EIA), Iran was the second-largest supplier of propane—a key component of LPG—to China in 2023. The US was China’s largest source of propane imports, but the ongoing US-China trade tensions have disrupted trade flows and could affect future transactions.

Washington has for years focused its sanctions regime on Iran’s crude oil exports, targeting key shipping networks and intermediaries. While these measures temporarily disrupted oil flows to major buyers such as China, Iranian oil shipments have since rebounded. Often, Iranian oil exports to China are disguised, with cargoes falsely labeled as originating from Malaysia and transferred between tankers in Southeast Asian waters to obscure their true source.

By Tamilla Hasanova