By Pishtaz | 2026-02-20

The United States has imposed a new round of sanctions targeting Iranian oil traders and shadow fleet vessels to disrupt revenue used for terrorism.

Announced by the US Department of the Treasury on February 6, the measures advance a broader campaign holding the Islamic Republic accountable for destabilizing activities.

The Office of Foreign Assets Control (OFAC) said this network enabled continued oil exports despite restrictions, generating billions in illicit revenue.

US officials expect the measures to constrain financing for terrorism, missile programs, and internal repression.

What led to the sanctions

The sanctions counter the Islamic Republic’s reliance on oil and petrochemical exports as its primary source of revenue.

According to Treasury officials, proceeds from these exports are diverted to militant proxies, terrorist organizations, and internal security forces suppressing dissent.

Officials argue the Islamic regime prioritizes destabilizing activities over economic welfare, even as ordinary citizens face inflation and unemployment pressures.

The measures were implemented under Executive Order 13846, authorizing penalties against those facilitating Iran’s petroleum trade.

By targeting the energy sector, policymakers seek to strike at the financial core of Iran’s regional influence.

Analysts say these sanctions also reflect broader efforts to limit Iran’s ability to bypass restrictions through deceptive shipping practices and illicit financial networks.

Who the sanctions affect

The sanctions target 15 entities, 2 individuals, and 14 vessels transporting Iranian-origin crude oil and petrochemical products.

These actors operate across jurisdictions including the United Arab Emirates, Türkiye, Seychelles, and China.

Officials said the entities used complex shipping arrangements, falsified documentation, and ship-to-ship transfers to conceal Iranian cargo origins.

Many vessels are part of a "shadow fleet" operating outside standard regulatory oversight and maritime compliance systems.

These ships frequently disable tracking systems, change flags, or rely on shell companies to avoid detection.

By blocking property and prohibiting transactions involving designated entities and vessels, the sanctions target a critical funding source for the Islamic regime’s security apparatus.

The sanctions also signal international resolve, warning companies and governments that facilitating the Islamic Republic's oil trade carries significant legal and financial risks.

According to statements from US agencies, enforcement will remain a priority with additional actions possible against evasion networks.

Policymakers hope sustained pressure will force the Islamic regime in Tehran to reconsider economic and security policies.