The U.S. Department of the Treasury on Thursday announced a new set of sanctions aimed at Iran’s military-linked oil trade, designating multiple vessels and entities it says are involved in transporting Iranian crude oil and petroleum products to international markets. The action arrives against the backdrop of a tentative agreement between Washington and Tehran to extend a ceasefire and lift restrictions on passage through the Strait of Hormuz.
In its release, the Treasury named eight vessels targeted by the sanctions. Among them are the Marshall Islands-flagged oil tanker Flora, the Comoros-flagged crude oil tanker Hauncayo, and the Panama-flagged tanker Ill Gap. The announcement underlined U.S. concerns that oil revenue could be diverted to strengthen Iran’s armed forces and military capabilities.
"We will not allow the Iranian government to increase its oil revenue for the purpose of reconstituting its armed forces and military capabilities," Treasury Secretary Scott Bessent said in a release.
Officials also said the sanctions extended beyond ships to more than 15 entities involved in facilitating the trade. The Treasury listed organizations that include Worth Seen Energy Limited based in Hong Kong, Symphony Shipping and Maritime Management Inc in Dubai, and Mehdiyev Trading Co, also in Hong Kong.
Washington’s action coincides with diplomatic progress: a tentative deal to prolong a ceasefire and to lift prior restrictions on commercial traffic through the Strait of Hormuz. The strait, located between Iran and Oman, had been effectively closed during the conflict the United States and Israel launched on February 28, a disruption that affected a waterway through which 20% of the world’s oil and gas normally flowed.
Despite the tentative accord, the Treasury’s sanctions signal continued U.S. efforts to constrain Iran’s ability to finance the reconstitution of its military forces. Separately, the White House has noted that President Donald Trump has yet to approve the deal reached in the war that the U.S. and Israel launched on February 28.
The Treasury described its measures as a targeted approach to choke off revenue streams tied to Iran’s military oil trade, while the diplomatic track seeks to restore safer passage through a key maritime artery.