Biden administration boosts US sanctions against Iran to target ‘ghost fleet’

The Treasury Department’s Office of Foreign Asset Control expanded sanctions against Iran’s petroleum and petrochemical industry following Tehran’s attack on Israel.

Treasury, in tandem with the US State Department, also unveiled enforcement actions against the “ghost fleet” of vessels and firms that facilitate transport of Iranian crude to buyers in Asia.

The State Department designated a network of companies based in Suriname, India, Malaysia and Hong Kong for allegedly arranging for the sale and transport of petroleum and petroleum products from Iran. It listed 23 vessels and 16 entities participating in shadow trade.

The new penalties aim to block this ghost fleet from using the US financial system and bar American citizens from dealing with company, person or ship involved.

The Biden administration said the additional sanctions actions should further disrupt the Iranian regime’s ability to fund and carry out further attack.

“Today’s sanctions target Iranian efforts to channel revenues from its energy industry to finance deadly and disruptive activity—including development of its nuclear program, the proliferation of ballistic missiles and unmanned aerial vehicles, and support to regional terrorist proxies—with dangerous consequences for the region and the world,” Treasury Secretary Janet Yellen said in an Oct. 11 statement. “We will not hesitate to take further action to hold Iran accountable.”

ClearView Energy Partners said the new sanctions could increase oil prices. “As a functional matter, we believe the new sanctions authorities have potential to eventually tighten global supply-demand balances,” the Washington-based energy analysts said in a client statement.