Ken Okeke
The United States has multiplied actions to reduce Irans oil export by imposing sanctions on more than 30 people and vessels for selling and transporting Iranian petroleum-related products as part of the country’s” shadow fleet,”.
The latest sanctions target tanker operators and managers in India and China; oil brokers in the United Arab Emirates (UAE) and Hong Kong and the head of Iran’s National Iranian Oil Company.
Two weeks ago, President Donald Trump’s first sanctions against Iran targeted 3 vessels carrying Iranian crude to China.
The sanctions affected one very-large crude carrier (VLCC) and two Aframaxes that the Treasury Department said helped move Iranian oil to China.
They also targeted several entities and individuals across different countries involved in the trade, on behalf of Tehran’s Armed Forces General Staff and its sanctioned front company, Sepehr Energy Jahan Nama Pars.
Last year, Trump pledged in his Republican National Convention speech to reduce Iranian oil exports.
He said he had previously achieved this objective by linking it to trade; “I told China and other countries, if you buy from Iran, we will not let you do any business in this country and we will put tariffs on every product you do send in of 100 per cent or more.” According to StanChart, Iranian oil is likely to play a key role in Trump’s wider China trade policy agenda.
“A Trump victory may see the United States enforce sanctions against Iran, thereby reducing Iranian oil exports and prompting oil prices higher,” Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia, said in a note.
China has been importing Iranian oil indirectly via proxies. According to multiple media sources, the transfers involve a dark fleet consisting of a group of aging tankers that rarely have an identifiable insurer.
These transfers can be hazardous, including the danger of spills and collisions, with so many low-quality tankers massed in a narrow trade route with their transponders off.
For instance, two such vessels caught fire off Singapore after a collision in July 2024.