By Pishtaz | 2026-03-09

The United States expanded sanctions against networks tied to the Islamic Republic, targeting ships, companies, and individuals supporting illicit oil sales and weapons development.

The measures form part of Washington’s broader effort to disrupt financial networks used by Islamic regime to fund repression, proxy groups, and military programs.

On February 25, the Office of Foreign Assets Control (OFAC) imposed penalties on more than 30 individuals, entities, and vessels linked to the regime’s oil exports.

According to US officials, the sanctioned actors played important roles facilitating illicit Iranian oil shipments and supporting the development of ballistic missiles and advanced weapons.

The sanctions also targeted networks procuring machinery and precursor materials for Iran’s military industry.

US officials said these procurement channels help the Islamic Revolutionary Guard Corps (IRGC) acquire components needed for ballistic missile and unmanned aerial vehicle programs.

Officials argued revenue generated through these networks does not support the Iranian population but instead finances domestic repression and military expansion.

Oil transported by sanctioned vessels helps fund security services responsible for suppressing protests and dissent inside Iran, according to these officials.

Targeting regime's shadow fleet

A central focus of the sanctions campaign is Islamic regime's so-called "shadow fleet," consisting of aging tankers and shipping companies used to conceal Iranian crude origins.

These vessels frequently employ deceptive shipping practices, including falsified documentation, ship to ship transfers, and disabled tracking systems to avoid detection.

The February 25 action also designated 12 additional vessels together with their owners or operators involved in transporting Iranian petroleum products internationally.

US officials said these ships have moved hundreds of millions of dollars’ worth of Iranian oil despite existing sanctions restrictions.

The shadow fleet has become the Islamic regime’s primary mechanism for generating revenue despite international sanctions pressure, according to OFAC officials.

The vessels "serve as the regime’s primary source of revenue for financing domestic repression, terrorist proxies and weapons programs."

Impact on Islamic Republic's oil exports

The sanctions campaign is already affecting Islamic regime's energy sector and contributing to a measurable decline in crude shipments.

Analysts report sustained US pressure has disrupted supply chains supporting Iranian oil exports across international markets.

In January 2026, Iranian crude loadings reportedly fell by approximately 26 percent compared with the previous year.

Shipments dropped to below 1.39 million barrels per day as sanctions increasingly targeted vessels and intermediaries involved in transportation.

US officials believe targeting additional vessels and intermediaries will further restrict the regime's ability to move oil through unofficial channels.

Cutting off these revenue streams is intended to limit Islamic Republic's ability to finance weapons programs and regional proxy groups.