Treasury intensifies pressure on Tehran’s covert oil trade
Scott Bessent / shadow fleet Courtesy Wikipedia)Washington, DC (Times Media Service) –The U.S. Treasury Scott Bessent has imposed fresh sanctions targeting Iran’s shadow fleet and a complex oil smuggling network, aiming to choke off billions of dollars in revenue that fund the Islamic Revolutionary Guard Corps–Qods Force.
Background on the Oil-Smuggling Network
Since at least 2020, a network led by Iraqi-British national Salim Ahmed Said has blended Iranian crude with Iraqi oil and shipped it to Western buyers under false documentation. The scheme relies on front companies such as VS Tankers FZE (formerly AISSOT) and clandestine transfer points in Khor al-Zubayr, enabling the IRGC-QF to benefit from proceeds estimated in the billions.
Salim Said’s operations exploit lax oversight at certain Gulf ports, using forged bills of lading to mask Iranian origin. Proceeds flow through a web of shell corporations before reaching accounts tied to Tehran’s paramilitary and proxy networks.
Targeting Iran’s “Shadow Fleet”
The sanctions embassy also singled out a fleet of non-sanctioned tankers that receive clandestine ship-to-ship transfers from vessels on the U.S. blacklist. By carrying Iranian crude to buyers—particularly in Asia—these ships skirt restrictions imposed on the National Iranian Tanker Company. Among those designated are several Marshall Islands-flagged vessels implicated in facilitating IRGC shipments.
Hezbollah Financiers in the Crosshairs
In tandem, the Treasury designated multiple entities and senior officials within the Hezbollah-controlled bank Al-Qard Al-Hassan. These figures processed millions in transactions obscuring the flow of funds to the militant group, underscoring Washington’s effort to dismantle financial networks backing Tehran’s regional proxies.
Strategic Context and Timing
This round of US sanctions follows June 22 airstrikes on three Iranian nuclear sites—including Fordow—that U.S. officials say set Tehran’s program back by up to two years. With nuclear diplomacy slated to resume in Oslo in mid-July, the measures send a clear message: even amid talks, the U.S. will maintain maximum economic pressure.
Impact on the United States
By disrupting illicit oil flows, the sanctions aim to tighten global crude markets and prevent deeply discounted Iranian oil from depressing prices. While American consumers are unlikely to see significant price hikes, U.S. energy firms may face marginally tighter market conditions. Politically, the measures enjoy bipartisan support as a tool to curb Iran’s destabilizing activities.
Reaction and Next Steps
Treasury Secretary Scott Bessent vowed to “continue targeting Tehran’s revenue sources and intensify economic pressure” to deny the regime funds for its destabilizing agenda. Iran’s UN mission has not formally responded, and VS Tankers has announced plans to legally challenge the designations. As U.S. and Iranian negotiators prepare to meet in Oslo, these sanctions bolster Washington’s leverage on both nuclear and regional issues.
Amelia Evans / World News Contributor (Times Media Service)
World news contributor for Times Media Service, specializing in global politics, economics, culture, and lifestyles.
aevens@timesmediaservice.com
