On Thursday, October 8, 2023, the U.S. Department of the Treasury published a list of sanctions that includes 17 Iranian ships and companies. These sanctions are aimed at countering Iran's economic activities and limiting its revenue sources.
Details of the Sanctions
The list published by the Office of Foreign Assets Control of the Treasury includes the names of 6 individuals, 10 companies, and 5 vessels under Executive Order 13846 and 17 companies and 17 vessels under Executive Order 13902. Among these, the oil tankers "Tina 5" and "Shenzhen" are recognized as part of this sanctions list. These ships were transferring millions of barrels of crude oil and petroleum products from Iran to markets in South and East Asia.
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Economic Impact of the Sanctions
The Treasury Department stated in a statement that these sanctions will help reduce Iranian oil shipments and intensify pressure on various sectors of the country's economy. According to the department, the aim of this action is to limit the options of the Islamic Republic to stabilize the country's economy. Additionally, the department has announced that Iran's shadow fleet, created to circumvent sanctions, includes a network of aging tankers used to transport oil and petroleum products to foreign markets.
The Treasury also noted the removal of the names of two ships, "Hakuna Matata" and "Pinocchio," from the sanctions list, citing their exit from the shadow fleet and sale to non-sanctioned operators as the reason for this decision. The department emphasized the continued monitoring and identification of efforts to circumvent the sanctions.
The statement mentioned that the tanker "Shenzhen" has carried over 3.5 million barrels of crude oil, while the tanker "Starway" has transported over 3 million barrels of Iranian oil. Additionally, the tanker "Tina 5" moved over 1.5 million barrels of Iranian crude oil in the summer of 2026. The ship "Kanha" has also transferred over 3 million barrels of high-sulfur Iranian fuel oil to ports in the Middle East and India, and the ship "King Chin" has delivered several million barrels of Iranian methanol to China.
Scott Basset, the U.S. Treasury Secretary, emphasized in this statement that the department's goal is to cut off the Iranian government's financial resources for military activities in the region, and anyone who assists Iran in circumventing sanctions will not be safe from the Treasury's authorities.
These sanctions are part of the "Economic Isolation" campaign that began on August 24, 2023, and so far, 11 sanction packages have been added to this campaign. The Treasury also referred to new sanctions that include the automotive industry and the IRGC's financial networks, stating that this action is aimed at limiting the economic resources of the Islamic Republic of Iran.
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