The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced new sanctions targeting Iran’s so-called shadow fleet, which is used to export Iranian petroleum and petroleum products in violation of international restrictions. The latest measures designate 29 vessels and their management firms that have moved hundreds of millions of dollars’ worth of Iranian oil.
Among those targeted is Hatem Elsaid Farid Ibrahim Sakr, an Egyptian businessman whose companies are linked to seven vessels included in this action, as well as several shipping firms.
“Treasury will continue to deprive the regime of the petroleum revenue it uses to fund its military and weapons programs,” said Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “As President Trump has said repeatedly, the United States will not allow Iran to have a nuclear weapon.”
The sanctions are part of a broader campaign under Executive Order 13902, which focuses on Iran’s petroleum and petrochemical sectors. Since President Trump resumed office, his administration has sanctioned more than 180 vessels involved in transporting Iranian oil, raising costs for exporters and reducing Iran’s revenue from oil sales.
The designated vessels operate under various flags—including Palau, Panama, Cook Islands, Barbados, Jamaica—and are managed by companies registered in jurisdictions such as the United Arab Emirates (UAE), Panama, Marshall Islands, India, British Virgin Islands, Liberia, and others. These ships have transported large quantities of crude oil and other petroleum products like fuel oil, bitumen, naphtha, condensate and lubricants throughout 2024 and 2025.
Several UAE-based entities associated with Sakr—such as Red Sea Ship Management LLC and High Seas Petroleum LLC—have been responsible for moving significant volumes of Iranian petroleum products in coordination with front companies tied to Iran’s Ministry of Defense. Other shipping management firms operating out of different countries were also named in the sanctions.
In addition to freezing any property or interests belonging to these individuals or entities within U.S. jurisdiction or held by U.S. persons, OFAC regulations generally prohibit all transactions involving them unless specifically authorized or exempted. Entities owned at least 50 percent by one or more blocked persons are also subject to these restrictions.
Violations can result in civil or criminal penalties for both U.S. and foreign parties involved. OFAC may impose civil penalties on a strict liability basis; financial institutions risk exposure if they engage with designated persons or their property.
OFAC stated that its ability to add or remove names from its Specially Designated Nationals (SDN) List is central to its sanctions policy: “The ultimate goal of sanctions is not to punish but to bring about a positive change in behavior.” Guidance is available for those seeking removal from OFAC lists.
More information about today’s designations can be found on the Treasury Department website.
