The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions against Iran’s Minister of Petroleum, Mohsen Paknejad, along with several entities across multiple jurisdictions, including China and India. These measures target those involved in the operation or ownership of vessels transporting Iranian oil to China or lifting it from storage in Dalian, China.
Secretary of the Treasury Scott Bessent stated, “The Iranian regime continues to use the proceeds from the nation’s vast oil resources to advance its narrow, alarming self-interests at the expense of the Iranian people.” He emphasized that “Treasury will fight and disrupt any attempts by the regime to fund its destabilizing activities and further its dangerous agenda.”
These actions are taken under Executive Order 13902, focusing on Iran’s petroleum sector. This marks the third round of sanctions targeting Iranian oil sales since a National Security Presidential Memorandum was issued on February 4, 2025.
Additionally, three entities have been designated by the State Department under Executive Order 13846. They have identified three vessels as blocked property due to their involvement with these entities.
Paknejad is noted for his role since August 2024 as Iran’s Minister of Petroleum. Under his leadership, significant allocations of oil have been directed towards Iran’s armed forces.
The so-called “shadow fleet” used by Iran comprises various flagged vessels that facilitate disguised shipments worth billions. Several companies based in Hong Kong are implicated for operating such ships: Hong Kong Heshun Transportation Trading Limited owns PEACE HILL; Seasky Marine Co., Limited owns SEASKY; Sun Science International Co., Limited owns CORONA FUN.
Further designations include Seychelles-registered Fallon Shipping Company Limited and Bangladesh-based Aren Ship Management concerning POLARIS 1. Suriname-based Sea Services Providers NV is linked with LEXI.
Other companies facing sanctions include Liberia-registered Itaugua Services Inc for ITAUGUA; Marshall Islands-registered Neptune Marine Ltd and PRC-based Huaxia Trading Ltd for NESO; Seychelles-registered Turquoise Sea Marine Limited for LYDYA N; Marshall Islands-based United Tankers Ltd and India-based Lake View Ship Management Private Limited for BLUE GULF; Marshall Islands-registered Celestite Maritime Inc and Sri Lanka-based Marine Solution Pvt Ltd for SHANNON II.
Singapore-based Shipload Maritime PTE. LTD., Indonesia-based PT. Bintang Samudra Utama, and PT. Gianira Adhinusa Senatama are also sanctioned under E.O 13846 related to significant transactions involving Iranian petroleum products.
All assets within U.S jurisdiction connected to these designated persons are now blocked. Violations could lead to civil or criminal penalties under U.S law unless specifically authorized by OFAC licenses or exemptions.
OFAC emphasizes that while its power comes from adding individuals or entities to sanction lists like SDN List, it aims not only at punishment but also at encouraging positive behavioral changes through possible removal from such lists if warranted legally.
