The United States has escalated its campaign against Iran's oil exports by imposing sanctions on a sprawling network of individuals, companies, and vessels involved in facilitating the illicit trade. These measures, announced by the Treasury Department and the State Department across several recent actions, aim to choke off revenue streams the U.S. claims fund Iran's military activities and regional proxy groups.
The sanctions have repeatedly zeroed in on entities and vessels connected to Iran's oil sector, particularly those operating through what the U.S. terms a "shadow fleet." Recent actions, published around November 2025, designated specific companies like Sepehr Energy Jahan and UAE-based Shandong Independent Energy for their involvement in oil exports that allegedly benefit Iran's military. Vessels operated by entities such as Thasos Maritime and Trading S.A., Serifos Maritime and Trading S.A., Tilos Maritime and Trading S.A., and Corfu Maritime and Trading S.A. were also targeted for operating within Iran's petroleum sector. Furthermore, Yazd International Airways Company was sanctioned for allegedly assisting Mahan Air, an Iranian airline implicated in supporting regional proxies.
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Earlier actions, dating back to August 2025, saw the U.S. Department of State impose sanctions on two China-based crude oil and petroleum products terminal and storage operators. These entities were accused of facilitating the import of millions of barrels of Iranian-origin oil via U.S.-designated tankers. This marked the State Department's fourth round of sanctions specifically targeting China-based terminal operators, highlighting their perceived critical role in the Iranian crude oil supply chain. The administration asserted these actions were in furtherance of a national security directive aiming for "maximum economic pressure" on the Iranian regime.
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Throughout 2025, the U.S. has systematically expanded its sanctions list. By October 2025, the Treasury Department had sanctioned approximately 50 individuals, companies, and ships, primarily based in the United Arab Emirates, Hong Kong, and China. These actions were presented as targeting facilitators of Iranian oil shipments and sales of liquefied petroleum gas. This included a second Chinese oil terminal and a fourth independently owned refinery in China, deemed by the Treasury to be crucial for Iran's ability to export petroleum products and generate billions of dollars for the Iranian government. A previous report from November 2025 indicated a broader sweep, involving some 40 individuals, entities, and vessels, generating hundreds of millions of dollars in revenue.
By early 2026, the U.S. government continued to intensify economic pressure. In March 2026, Treasury Secretary Scott Bessent indicated that Kharg Island oil storage was full, potentially leading to a shutdown of Iranian oil wells. Concerns were raised that some sanctioned entities, like Hengli, had purchased oil linked to Iran's armed forces, providing hundreds of millions of dollars for the Iranian military and regional proxies. Treasury officials have consistently warned that further sanctions are anticipated, as the U.S. focuses on dismantling the networks, intermediaries, and buyers enabling Iran's oil exports.
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However, in a notable shift, on March 20, 2026, the U.S. Treasury issued a general license allowing the sale of Iranian crude oil and petroleum products loaded on vessels as of that date until April 19, 2026. Secretary Bessent stated this move was intended to release approximately 140 million barrels of oil into global markets, aiming to alleviate energy supply pressures. This followed prior easing of sanctions on Russian oil and came after Bessent had previously suggested waivers, sparking concerns that such policies could inadvertently benefit Iran's war efforts. The ultimate impact of this waiver on Iranian oil entering the country remained unclear.
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