US expands sanctions on network facilitating Iran’s illicit oil trade

The United States has intensified its action against Iran’s petroleum export network, announcing new sanctions targeting companies, individuals, and vessels, which the Washington has accused of enabling the country’s illicit oil trade and funds being used to destabilize regional activities and terrorism.

The Department of State said the latest measures focus on disrupting sophisticated evasion systems used to move sanctioned Iranian crude oil, including ship-to-ship transfers and so-called “dark fleet” operations that obscure the origin and destination of cargo.

The U.S. government said the measures are part of a broader strategy to intensify economic pressure on Iran by targeting its energy export lifeline and the international networks that support it.

“So long as Iran attempts to generate oil revenues to fund its destabilizing activities, the United States will continue to hold both Iran and its sanctions-evading partners accountable,” the State Department said.

Officials also reiterated that the purpose of sanctions is to change behavior rather than serve as permanent punishment, signaling that designated entities may eventually be removed from sanctions lists if they comply with U.S. policy requirements.

This latest action marks the 12th round of sanctions related to Iranian oil sales since the issuance of National Security Presidential Memorandum-2 in February 2025, and was taken under authority of Executive Order 13846, which reinstates and expands sanctions on Iran’s energy sector. This action targets a China-based petroleum terminal operator, Qingdao Haiye Oil Terminal Co., Ltd., that has imported tens of millions of barrels of sanctioned Iranian crude oil since the announcement of National Security Presidential Memorandum-2.



At the center of the new sanctions is Qingdao Haiye Oil Terminal Co., Ltd., a China-based crude oil terminal operator accused of receiving tens of millions of barrels of Iranian-origin oil during 2025.

According to US officials, the company facilitated imports through maritime routes involving covert ship-to-ship transfers near Singapore—an area described as a hotspot for illicit oil exchanges.

The company’s president, Chinese national Xin Chun Li, was also designated under the sanctions regime.

The State Department said such intermediaries play a critical role in enabling Iran to convert petroleum exports into revenue, despite international restrictions. The sanctions package also targets vessel management firms allegedly involved in transporting Iranian petroleum products through deceptive maritime practices. One of the designated firms, UK-based Thriving Times International Co Ltd, is accused of managing vessels engaged in transporting Iranian oil shipments. Among them is the tanker NEW FUSION, which reportedly carried Iranian-origin petroleum products in 2024 and 2025 under various covert arrangements.

Another designated company, Hong Kong-based Onboard Ship Management Limited, was identified as the technical manager of the LPG tanker OUREA, which loaded cargo from Iran’s Asaluyeh port in late 2025.

U.S. officials said these entities are part of a broader “dark fleet” network that uses evasive shipping tactics, including falsified tracking data and ship-to-ship transfers, to move sanctioned goods while avoiding detection.

Under the sanctions, all property and interests in property belonging to designated entities within U.S. jurisdiction are blocked. U.S. persons are prohibited from engaging in transactions involving the sanctioned parties unless authorized by the Office of Foreign Assets Control (OFAC).

Officials emphasized that entities owned 50 percent or more by sanctioned persons are also automatically blocked, and that enforcement will extend to financial and logistical facilitators worldwide.