U.S. targets Iranian oil exports and shadow fleet with new sanctions designations
Date of publication: August 27, 2025
On August 21, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 13 Iran-related entities based in Hong Kong, China, the United Arab Emirates, and the Marshall Islands, as well as 8 vessels, for facilitating Iran’s oil and petrochemical exports and operating within the global “shadow fleet.” This action aims to disrupt revenue streams that support Iran’s government and affiliated networks by targeting shipping, logistics, and front-company structures used to evade sanctions and obscure ownership and cargo origins.
This action has been taken pursuant to Executive Order (E.O.) 13846 for knowingly engaging in a significant transaction for the transport of petroleum or petroleum products from Iran, and E.O. 13902, which targets Iran’s petroleum sector. This action also marks the latest round of sanctions targeting Iranian oil sales since the President issued National Security Presidential Memorandum 2 (NSPM-2), instituting a campaign of maximum economic pressure on Iran.
As a result of this action, all property and interests in property of the designated or blocked persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, or 50 percent or more by one or more blocked persons are also blocked.
Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict liability basis. Additional information can be found in OFAC’s Economic Sanctions Enforcement Guidelines.
Conclusion
The latest OFAC designations underscore a sustained, cross-border push to constrain Iran’s petroleum revenues and the opaque networks that enable them. Leveraging E.O. 13846 and E.O. 13902, Treasury is tightening pressure on shipping, logistics, and front-company arrangements tied to Iranian exports. Businesses involved in shipping, trade, insurance, or finance should strengthen basic due diligence and transparency checks. This includes better screening of partners and cargo, and clearer understanding of who ultimately owns the entities they deal with.
These changes have been updated in ONESOURCE Global Trade Content.
For more information on how ONESOURCE Global Trade solutions can assist you in managing restricted party screening, please contact your Account Manager or Customer Success Manager.