US Tightens Sanctions On Iran’s Oil Network Supporting Its Military
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning a network of front companies and shipping facilitators that bankroll the Iranian armed forces by selling crude oil. Following its defeat in the 12-Day War with Israel, Iran’s military has increasingly come to rely on the sale of Iranian crude oil to supplement its annual budget and finance the rebuilding of its depleted forces.
“Today’s action continues Treasury’s campaign to cut off funding for the Iranian regime’s development of nuclear weapons and support of terrorist proxies,” said Secretary of the Treasury Scott Bessent. “Disrupting the Iranian regime’s revenue is critical to helping curb its nuclear ambitions.”
OFAC today is also targeting six vessels, expanding sanctions on the shadow fleet of tankers Iran relies on to transport its oil exports to market. The Trump Administration has sanctioned over 170 vessels responsible for shipping Iranian petroleum and petroleum products, driving up costs for Iranian oil exporters and reducing the revenue Iran receives for each barrel of oil sold.
Lastly, OFAC is taking further action against Iranian airline Mahan Air, which has worked closely with the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) to arm and supply Iran-backed terrorist groups throughout the Middle East. Mahan Air played a key role in the Iranian regime’s efforts to arm the now-deposed regime of Syrian dictator Bashar al-Assad.
Today’s action builds on recent sanctions taken in February and May targeting key enablers of Iran’s military oil exports. Today’s action is being taken primarily pursuant to the counterterrorism authority Executive Order (E.O.) 13224, as amended, and E.O. 13902, which targets Iran’s petroleum and petrochemical sectors. It continues the robust sanctions campaign targeting Iranian oil sales in support of the President’s National Security Presidential Memorandum 2 (NSPM-2), instituting maximum economic pressure on Iran.
The Iranian military, through the designated Armed Forces General Staff oil sales arm Sepehr Energy Jahan Nama Pars Company (Sepehr Energy Jahan), uses an array of front companies and shadow fleet vessels to obfuscate its illicit activities and sell billions of dollars’ worth of Iranian oil annually, supplementing its budget and providing a vital source of foreign currency.
Sepehr Energy Jahan’s oil exports depend on access to shadow fleet vessels willing to transport the military’s oil. Throughout late 2024 and early 2025, Sepehr Energy Jahan used United Arab Emirates (UAE)-based vessel chartering company Luan Bird Shipping Service L.L.C (Luan Bird) to ship Iranian oil. Luan Bird paid commissions related to Sepehr Energy Jahan crude oil shipments aboard the sanctioned vessels BOREAS (IMO 9248497; now URI), SIRI (IMO 9281683), and OXIS (IMO 9224805). In early 2025, Sepehr Energy Jahan used Luan Bird to charter the sanctioned vessels BALU (IMO 9235244) and ROC (IMO 9275660).
UAE-based Mars Investment L.L.C, a Sepehr Energy Jahan front company, financed millions of dollars’ worth of chartering agreements with owners of shadow fleet vessels. In spring 2024, Sepehr Energy Jahan used Mars Investment L.L.C to pay U.S.-designated shipping company Oceanlink Maritime DMCC to charter the sanctioned vessels BOREAS and HECATE (IMO 9233753). Similarly, in early 2024, Mars Investment L.L.C and Oceanlink Maritime DMCC collaborated to deliver nearly two million barrels of Iranian oil to Sepehr Energy Jahan front company Milen Trading Co., Limited.
Panama-based Loire Shipping Inc. has served as the registered owner of the sanctioned vessel HEBE (IMO 9259185) since January 2020. Since its sanctioning in April 2024, the HEBE, now known as the DAKSHA, has continued its activities on behalf of Sepehr Energy Jahan at the direction of Sepehr Energy Jahan officials.
Between early January and early February 2025, the Panama-flagged KALLISTA (IMO 9411965), owned and operated by Greece-based Altomare S.A., transported nearly four million barrels of Iranian oil in multiple shipments on behalf of Sepehr Energy Jahan.
Luan Bird Shipping Service L.L.C, Mars Investment L.L.C, Loire Shipping Inc., and Altomare S.A. are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Sepehr Energy Jahan. KALLISTA is being identified as property in which Altomare S.A. has an interest.
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