The U.S. Department of the Treasury has announced a comprehensive expansion of sanctions against Iran’s oil export infrastructure, targeting dozens of companies, individuals, and vessels involved in funding the Iranian military through illicit crude oil sales.

The sanctions, announced last Thursday by the Treasury’s Office of Foreign Assets Control (OFAC), focus on dismantling the network of front companies and shipping facilitators that support Iran’s armed forces. Following Iran’s defeat in what the Treasury described as the “12-Day War with Israel,” the Iranian military has become increasingly dependent on oil revenue to rebuild its depleted forces.

“Today’s action continues Treasury’s campaign to cut off funding for the Iranian regime’s development of nuclear weapons and support of terrorist proxies,” said Treasury Secretary Scott Bessent. “Disrupting the Iranian regime’s revenue is critical to helping curb its nuclear ambitions.”

The action targets the Iranian Armed Forces General Staff oil sales arm, Sepehr Energy Jahan Nama Pars Company, which uses an elaborate network of front companies and shadow fleet vessels to sell billions of dollars’ worth of Iranian oil annually. The Treasury has sanctioned multiple UAE-based entities that facilitated these operations, including Luan Bird Shipping Service L.L.C, which chartered sanctioned vessels to transport Iranian oil throughout late 2024 and early 2025.

The sanctions also extend to the shadow fleet itself, with OFAC targeting six additional vessels. The Trump Administration has now sanctioned over 170 vessels responsible for shipping Iranian petroleum products, a move designed to increase costs for Iranian oil exporters and reduce revenue per barrel.

Among the notable cases, Germany-based BPT Berlin Petroleum Trading GmbH sought to purchase millions of barrels of Iranian crude oil in early 2025, with Iran offering a significant $17 per barrel discount to attract buyers despite sanctions risks. The steep discount illustrates the financial pressure U.S. sanctions have placed on Iranian oil exporters.

The Treasury’s action also targets Mahan Air’s subsidiary, Yazd International Airways Company, which has assisted Iran’s Islamic Revolutionary Guard Corps-Qods Force in transporting weapons and personnel to support Iranian proxies in the Middle East. Prior to the fall of the Assad regime in Syria, Yazd Airways aircraft were used to transfer weapons to Syria and transport IRGC-QF officers to Lebanon to support Hezbollah operations.

The designation of individuals includes several Iranian nationals who have provided critical support to the oil smuggling network, including managing vessels, coordinating ship-to-ship transfers, and handling financial transactions through cryptocurrency.

This latest round of sanctions builds on actions taken in February and May 2025, and continues the Trump Administration’s maximum pressure campaign against Iran. The comprehensive approach targets multiple layers of Iran’s oil export infrastructure, from vessel operators and charterers to buyers and financial intermediaries.

The Treasury also sanctioned several Panama-based maritime companies that own or operate vessels transporting Iranian liquefied petroleum gas and other petroleum products to South Asia. Vessels including the TUSITALA and NEXO collectively transported millions of barrels of Iranian LPG in 2025 alone through ship-to-ship operations designed to obscure cargo origins.