By Micah Jonah
January 23, 2023
The United States on Friday slapped sanctions on nine vessels and eight companies connected to Iran’s so-called “shadow fleet,” aiming to choke off funds used to suppress protests and support regional militias, the U.S. Treasury Department said.
Treasury Secretary, Scott Bessent said the targeted vessels, some registered in India, Oman, and the United Arab Emirates, have transported hundreds of millions of dollars of Iranian oil and petroleum products to international markets. “These sanctions target a critical component of how Iran generates funds used to repress its own people,” Bessent said.
The move comes after a violent crackdown in Iran, described by rights groups as the harshest since the 1979 Shi’ite revolution, during which thousands, including bystanders, were reportedly killed. President Donald Trump had previously warned of U.S. intervention following the unrest and announced a naval “armada” en route to the region.
The Treasury stressed that revenue from the fleet, which should belong to the Iranian people, is instead diverted to fund Iran’s security services, weapons programs, and proxy militias. The “shadow fleet” typically consists of older ships with opaque ownership and limited insurance, avoiding conventional trade scrutiny.
Vessels hit by the sanctions include the Sea Bird, Al Diab II, Cesaria, Avon, and Chiron 5, flagged by Palau and the Comoros. U.S. officials noted that sanctions aim to prevent Iran from funneling tens of millions of dollars abroad to evade financial controls.
While Iran maintains its nuclear program is for peaceful purposes, U.S. officials said the sanctions and military presence signal Washington’s determination to respond to abuses against protesters and regional destabilization.
The sanctions add another layer of pressure on Tehran as tensions in the Middle East remain high, with global attention focused on human rights violations and geopolitical risks tied to Iran’s economic activities.
