March 13, 2025 – Washington, D.C.
In a continued effort to curb Iran’s oil exports and disrupt its financial support for military and destabilizing activities, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed new sanctions on Iran’s Minister of Petroleum, Mohsen Paknejad, as well as several entities involved in transporting Iranian oil. The latest sanctions target key players in Iran’s “shadow fleet” operations, which facilitate the shipment of Iranian oil, particularly to the People’s Republic of China (PRC).
Iranian Petroleum Sector Under Scrutiny
Mohsen Paknejad, appointed as Iran’s Minister of Petroleum in August 2024, oversees the country’s National Iranian Oil Company (NIOC). Under his leadership, the ministry has allocated billions of dollars’ worth of crude oil to Iran’s armed forces, including the Islamic Revolutionary Guard Corps (IRGC) and Iranian Law Enforcement Forces. Recent budget estimates indicate that by the end of 2025, more than half of Iran’s total oil revenue will be directed toward the country’s military and security forces.
Paknejad has been sanctioned under Executive Order (E.O.) 13902, which targets Iran’s petroleum and petrochemical sectors. The designation is part of a broader campaign initiated under National Security Presidential Memorandum 2 on February 4, 2025, aimed at exerting maximum pressure on Tehran.
Targeting Iran’s Shadow Fleet
Iran relies on a clandestine network of vessels, often flagged under foreign jurisdictions, to transport its oil in defiance of international sanctions. The latest OFAC measures designate multiple entities involved in these activities across various countries, including the PRC, Hong Kong, India, Seychelles, and Bangladesh.
Key Vessels and Entities Sanctioned
Several vessels involved in transporting Iranian oil have been identified and sanctioned. Among them:
- PEACE HILL (IMO: 9288019) – A Hong Kong-flagged vessel that has transported millions of barrels of Iranian crude.
- SEASKY (IMO: 9237412) – A San Marino-flagged vessel that facilitated the shipment of Iranian fuel oil to the PRC.
- CORONA FUN (IMO: 9276573) – A Panama-flagged vessel that used Automatic Identification System (AIS) manipulation to obscure its oil shipments.
- POLARIS 1 (IMO: 9272694) – An Iran-flagged vessel managed by Bangladesh-based Aren Ship Management.
- LEXI (IMO: 9203277) – A Cameroon-flagged tanker engaged in ship-to-ship transfers of Iranian crude.
The companies owning and operating these vessels have also been sanctioned. This includes Hong Kong-based firms Hong Kong Heshun Transportation Trading Limited, Seasky Marine Co., Limited, and Sun Science International Co., Limited, as well as Seychelles-registered Fallon Shipping Company Limited and Bangladesh-based Aren Ship Management.
State Department Designations
The U.S. State Department has taken additional actions under E.O. 13846, targeting three entities and identifying three more vessels as blocked property due to their involvement in the Iranian oil trade:
- Shipload Maritime PTE. LTD. (Singapore)
- PT. Bintang Samudra Utama (Indonesia)
- PT. Gianira Adhinusa Senatama (Indonesia)
- Malili (IMO: 9179921) – An Indonesia-flagged vessel linked to Shipload Maritime PTE. LTD.
- CELEBES (IMO: 8710730) – An Indonesia-flagged tanker associated with PT. Bintang Samudra Utama.
- Marina Vision (IMO: 8106109) – An Indonesia-flagged vessel tied to PT. Gianira Adhinusa Senatama.
Sanctions Implications
As a result of these sanctions, all property and interests of the designated individuals and entities that fall under U.S. jurisdiction are blocked. U.S. persons and companies are prohibited from engaging in transactions with these sanctioned parties unless authorized by OFAC. Financial institutions and businesses that facilitate transactions with blocked entities may also face secondary sanctions.
OFAC has reiterated that violations of U.S. sanctions could result in significant civil or criminal penalties. The enforcement of these measures is part of a broader effort to pressure the Iranian government by restricting its ability to fund military operations through oil revenues.
Strategic Impact
The latest round of sanctions marks the third such action against Iran’s oil sector since February 2025, reinforcing the Trump administration’s commitment to cutting Iran’s oil exports to zero. The move is expected to further strain Iran’s economy, which relies heavily on oil revenue, and complicate its efforts to circumvent international sanctions through illicit shipping networks.
As tensions persist, the effectiveness of these measures will depend on continued enforcement and international cooperation, particularly from nations that currently import Iranian oil. The U.S. has signaled its intent to maintain pressure on Tehran while working with global partners to prevent the Iranian regime from accessing funds that could fuel regional instability.
