US targets Iranian oil smuggling network, ‘shadow fleet’ with sanctions

The U.S. targeted Iran’s “shadow fleet” and an Iraq-Iran oil smuggling network with sanctions Friday in a bid to disrupt Tehran’s “access to the financial resources that fuel its destabilizing activities,” Treasury Secretary Scott Bessent announced. 

The Treasury Department said it is “taking action against networks that have collectively transported and purchased billions of dollars’ worth of Iranian oil, some of which has benefited Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), a designated Foreign Terrorist Organization.” 

“As President Trump has made clear, Iran’s behavior has left it decimated.  While it has had every opportunity to choose peace, its leaders have chosen extremism,” Bessent said in a statement.  

Among those sanctioned is Iraqi-British national Salim Ahmed Said, whom the Treasury said “runs a network of companies that have been selling Iranian oil falsely declared as Iraqi oil since at least 2020”. 

IRAN CONFLICT REVEALS NEED FOR AMERICA TO RETHINK DEFENSE SUPPLY CHAIN, EXPERT SAYS 

Iranian Supreme Leader Ayatollah Ali Khamenei makes the remarks during a ceremony marking the first anniversary of the death of former Iranian President Ebrahim Raisi, who died in a helicopter crash in northern Iran last year, in Tehran, Iran, on May (Iranian Leader Press Office / Handout/Anadolu via Getty Images / Getty Images)

“Said’s companies use ship-to-ship transfers and other obfuscation techniques to hide their activities.  Said’s companies and vessels blend Iranian oil with Iraqi oil, which is then sold to Western buyers via Iraq or the United Arab Emirates as purely Iraqi oil using forged documentation to avoid sanctions,” it added. “This allows the oil to be sold on the legitimate market and helps Iran evade international sanctions on its oil exports.” 

Treasury officials allege Said has bribed many Iraqi government bodies – including its parliament – to the tune of millions of dollars in kickbacks in exchange for help in carrying out the scheme. 

They also said Iran “relies on non-sanctioned vessels to conduct ship-to-ship transfers and receive Iranian oil from sanctioned vessels before shipping the Iranian-origin cargo to buyers in Asia.” 

US OIL PRODUCTION SHIELDS ECONOMY FROM STRAIT OF HORMUZ THREATS 

A general view of the Port of Kharg Island Oil Terminal near the Iranian coast in the Persian Gulf. Kharg Island Oil Terminal brings Iranian oil to the world market.  (Fatemeh Bahrami/Anadolu Agency/Getty Images / Getty Images)

“The National Iranian Tanker Company (NITC) uses Singapore-based Trans Arctic Global Marine Services PTE. LTD. (Trans Arctic Global) to arrange piloting services for NITC vessels transiting through the Strait of Malacca,” according to the Treasury Department. “Trans Arctic Global has enabled NITC to transport tens of millions of barrels of Iranian oil through the Strait of Malacca for eventual ship-to-ship transfers to vessels waiting in the Singapore Eastern Outer Port Limits.” 

Trans Arctic Global, as well as the Cameroon-flagged Vizuri, Comoros-flagged Fotis and Panama-flagged Themis and Bianca Joysel ships, were hit with sanctions. 

The moves come after the Trump administration launched airstrikes on key nuclear sites across Iran. 

A map showing how Iran smuggles oil through Iraq, according to the Treasury Department (Treasury Department)

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“The Department of State is sanctioning six entities and identifying four vessels for having knowingly engaged in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum, petroleum products or petrochemical products from Iran,” the U.S. State Department also announced. 

FOX Business’ Alexandra Koch contributed to this report.