Important News

U.S. Treasury Sanctions Nine Vessels and Eight Companies Linked to Iranian Oil Shipments

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Key takeaways

  • On Jan. 23, 2026, OFAC designated nine vessels and eight related companies for transporting Iranian oil and petroleum products.
  • Designations were made under Executive Order 13902, targeting Iran’s petroleum and petrochemical sectors and continuing NSPM-2 policy.
  • Designated vessels include SEA BIRD, AVON, AL DIAB II, CESARIA, LONGEVITY 7, EASTERN HERO, AQUA SPIRIT, CHIRON 5, and KEEL.
  • Designated companies include Horizon Harvest Shipping LLC; Aayat Ship Management Private Limited; Black Stone Oil and Gas; Galeran Service Corp; Longevity Shipping Limited; Odyssey Marine Inc.; Benoil Shipping Inc; and Trade Bridge Global Inc.
  • All property and interests in property of the designated or blocked persons that are in the United States or controlled by U.S. persons are blocked; transactions with them are generally prohibited without OFAC authorization.
  • Treasury states the targeted oil revenue is being diverted to fund Iran’s regional proxies, weapons programs, and security services rather than basic services for the Iranian people.

Follow Up Questions

What is OFAC and what legal authority does it use to designate entities and block property?Expand

OFAC is the U.S. Treasurys Office of Foreign Assets Control; it administers and enforces U.S. economic and trade sanctions. Its designation and blocking authorities flow from statutes and presidential authorities (most notably the International Emergency Economic Powers Act (IEEPA), 50 U.S.C. �a7 1701 et seq.), related implementing regulations, and executive orders that declare national emergencies or impose sanctions; when OFAC lists a person or designates property as "blocked," U.S. persons generally must freeze and may not deal with that property without OFAC authorization.

What specifically does Executive Order 13902 do and who issued it?Expand

Executive Order 13902 (issued Jan. 10, 2020) directs sanctions targeting additional sectors of Irans economy (including petroleum and petrochemical activities); it authorizes blocking and other prohibitions on transactions involving persons operating in specified Iranian sectors and was the legal basis for later OFAC sectoral and entity designations under the Iran sanctions program.

What is the SDN List and what are the practical consequences of being designated or having property labeled as "blocked"?Expand

The SDN List is OFACs List of Specially Designated Nationals and Blocked Persons. Being on the SDN List (or having property labeled "blocked") means U.S. persons must freeze any assets or interests in assets under their possession or control and are generally prohibited from dealing with the designated person or property unless OFAC issues a license; non-U.S. persons can also face penalties for facilitating sanctions evasion.

What is meant by a "shadow fleet" and how do such vessels typically try to evade sanctions?Expand

A "shadow fleet" is a network of vessels (often older tankers) and front companies used to move sanctioned oil while hiding origin and ownership; operators use techniques like ship-to-ship transfers, turning off or falsifying automatic identification systems (AIS), renaming/reflagging, false voyage documents, and opaque ownership to evade sanctions and tracking.

What is a ship-to-ship transfer and why does Treasury single it out in this notice?Expand

A ship-to-ship (STS) transfer is when one vessel transfers cargo directly to another at sea (instead of loading/unloading at port). Treasury singles it out because STS makes it easier to obscure oils origin, alter ship records, and bypass port controls and sanctions screening, enabling revenue flows to sanctioned actors to continue.

How might these designations affect foreign buyers, insurers, ports, or banks that handled these vessels or cargoes?Expand

Designations can deter or penalize third parties: foreign buyers may face de-risking or loss of access to U.S. finance; insurers and reinsurers can refuse cover (raising costs or blocking shipments); ports may deny entry to flagged/blacklisted vessels; and banks that process related payments risk secondary sanctions, correspondent-account restrictions, or penalties for facilitating transactions tied to blocked property or evasion.

What is NSPM-2 and how does it relate to U.S. sanctions policy toward Iran?Expand

NSPM-2 refers to a National Security Presidential Memorandum (NSPM-2) issued by the U.S. government directing interagency policy on countering illicit financing (used by the administration to prioritize and coordinate sanctions and related measures against Iran ); Treasury says its designations continue the NSPM-2 policy by targeting oil revenue channels that fund Irans proxies and security apparatus.

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