The U.S. Treasury Department on Thursday imposed sanctions on 17 tankers linked to Iran’s so-called shadow fleet, a network used to transport oil and petrochemical products. The move is part of Operation Economic Outcast, a broader campaign aimed at restricting Iran’s ability to fund its regional activities through oil revenues.
Key developments:
- The sanctions target vessels responsible for transporting millions of barrels of Iranian crude, petroleum, and petrochemical products to markets in South Asia and East Asia.
- Two previously sanctioned vessels, the Hakuna Matata and Pinocchio, were removed from the list after being sold to non-sanctioned operators aligned with U.S. interests.
The Treasury’s Office of Foreign Assets Control (OFAC) designated the 17 vessels and 18 associated companies operating in Iran’s petroleum and petrochemical sectors. Under the sanctions, any property of these entities within U.S. jurisdiction or in the possession of U.S. persons is now blocked and must be reported to OFAC.
Operation Economic Outcast
The sanctions mark the latest expansion of Operation Economic Outcast, launched on August 24 by Treasury Secretary Scott Bessent. The campaign seeks to deprive the Iranian regime of revenue used to fund military and proxy activities in the region. Bessent stated in a release that the measures aim to “starve the tyrannical regime in Tehran of the money it uses to wage war.”
The newly sanctioned vessels are registered under more than a dozen jurisdictions, including Vanuatu, Comoros, and Cameroon. Among the targeted ships are:
- The Vanuatu-flagged Tina 5, which transported over 1.5 million barrels of Iranian crude in August.
- The Comoros-flagged Sogol, which has moved more than 2 million barrels of Iranian propane and butane since September 2025.
- The Cameroon-flagged Shenzhen, which has transported over 3.5 million barrels of crude oil.
The Treasury emphasized that the sanctions are designed to complement existing measures aimed at limiting Iran’s ability to sustain its regime and conduct military operations, including attacks in the Strait of Hormuz.
Global scale of enforcement
The sanctions reflect a coordinated effort to disrupt Iran’s illicit oil trade network, which relies on front companies and complex shipping arrangements to evade restrictions. The Treasury noted that the shadow fleet operates across international waters and multiple jurisdictions, complicating enforcement efforts.
While the immediate economic impact of the sanctions is expected to be limited, the Treasury described the targeted vessels as the “remnants” of Iran’s shadow fleet, signaling a push to dismantle the network entirely. The move follows previous rounds of sanctions targeting individuals and entities involved in Iran’s oil trade.
Background on Iran’s shadow fleet
Iran’s shadow fleet consists of vessels that operate outside traditional maritime channels to transport oil in defiance of international sanctions. These ships often use flags of convenience, obscure ownership structures, and ship-to-ship transfers to obscure the origin and destination of cargo. The U.S. and its allies have increasingly targeted this network to curb Iran’s ability to fund its regional activities, including support for groups such as Hezbollah and the Houthis.
The sanctions come amid ongoing tensions in the Middle East, where Iran-backed groups have been involved in multiple conflicts, including the war in Gaza and attacks on commercial shipping in the Red Sea and Gulf of Aden.