US targets Iranian 'shipping empire' in largest sanctions package since 2018

In a statement released on 30 July, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 62 vessels – including 37 tankers, 22 container ships, and three LPG carriers – of which approximately 50 are believed to be part of a network facilitating the illicit trade of Iranian and Russian oil.

These assets are tied to Mohammad Hossein Shamkhani (Hossein), the son of Ali Shamkhani, a “top political advisor” to Iran’s Supreme Leader. According to OFAC, Hossein oversees a “shipping empire” that includes a vast fleet of vessels, shipmanagement companies, and front firms laundering billions in profits from global oil sales of Iranian and Russian crude oil and other petroleum products, most often to buyers in China.

“Although the primary income source for Hossein’s network is oil sales, the network also operates a container ship fleet that carries cargo both to and from Iran, among other locations,” OFAC noted.

Entities within this network span multiple jurisdictions, including the United Arab Emirates, Marshall Islands, India, Turkey, Singapore and Switzerland. Earlier this month, the European Union also sanctioned Hossein Shamkhani for his role in transporting Russian oil, according to Reuters.

’Maximum pressure’ resurfaces

“The over 115 sanctions issued today are the largest to date since the Trump Administration implemented our campaign of maximum pressure on Iran,” said US Secretary of the Treasury Scott Bessent.

The latest measures follow a July announcement targeting 12 vessels and several firms reportedly controlled by Iraqi businessman Salim Ahmed Said, who has been linked to Iranian oil trading.

Meanwhile, Chinese imports of Iranian crude surged to a record high of over 1.8M barrels per day in June, according to data from MB Shipbrokers. Analysts noted independent Chinese refineries – known as ’teapots’– have capitalised on steep discounts for Iranian crude.

“The rise in shipments occurred despite the geopolitical tensions in the Middle East, indicating robust demand and the effectiveness of alternative supply routes,” analysts noted.