The United States imposed a fresh wave of sanctions on Iran’s oil sector, targeting over 30 individuals and tankers, including the National Iranian Oil Co. (NIOC) CEO, for facilitating the sale and transportation of Iranian crude, NewsBase reported on February 24.   

The measures, announced by the US Treasury and State Departments, aim to choke off Tehran’s oil revenues, which Washington claims fund destabilising activities in the Middle East.  The US has already blacklisted the NIOC for its alleged financial support to the foreign operations arm of Iran’s Islamic Revolutionary Guard Corps (IRGC).

The February 24 designation is the second round of sanctions since President Donald Trump signed a memorandum earlier this month to restore the so-called “maximum pressure” campaign to bring Iranian oil sales to “zero.”

“Iran continues to rely on a shadowy network of vessels, shippers, and brokers to facilitate its oil sales and fund its destabilising activities,” said US Treasury Secretary Scott Bessent.

“The United States will use all our available tools to target all aspects of Iran’s oil supply chain, and anyone who deals in Iranian oil exposes themselves to significant sanctions risk,” he added. 

Among those sanctioned is Iran’s Oil Minister Hamid Bovard, who also serves as the head of the state-owned company NIOC, which plays a key role in the country’s oil industry.

Treasury added 13 vessels to its sanctions list, including tankers flying flags of Panama, Barbados, Gambia, Cook Islands, Eswatini and Gabon. These vessels form part of what officials describe as Iran's "shadow fleet" used to circumvent international restrictions.

The designations also target 17 companies involved in Iran's maritime oil trade network spanning multiple jurisdictions. These include Alkonost Maritime DMCC and Octane Energy Group FZCO in the UAE; Petroquimico FZE in Ras Al Khaimah; Austinship Management Private Limited, BSM Marine LLP, Flux Maritime LLP, and Cosmos Lines Inc in India; Kangan Petro Refining Company in Iran; IMS Ltd in Malaysia; Petronix Energy Trading Limited and NYCity Shipmanagement Co Ltd in China; and several entities registered in Seychelles, Liberia and Marshall Islands.

"Today's action represents our continued commitment to target Iran's petroleum and petrochemical sectors, which generate funds used to destabilize the region," said a Treasury spokesperson. The sanctions block all property and interests of designated parties in US jurisdictions and prohibit transactions involving US persons.

Despite years of US-led sanctions, Iran’s oil industry has stayed afloat, relying on discreet ship-to-ship transfers in international waters and alternative payment systems that bypass Western financial institutions.

In 2023 alone, Tehran raked in some $53bn from oil exports, according to US Energy Information Administration data.

China, Iran’s largest oil customer, does not recognise US sanctions and has developed a workaround trading system using Chinese yuan and intermediaries to keep Iranian crude flowing.

It remains to be seen whether the latest crackdown will dent Iran’s exports, as previous measures under both Trump and his predecessor Joe Biden failed to halt the country’s oil trade.

Iran has already shrugged off US threats against its oil exports, with Oil Minister Mohsen Paknejad saying earlier in February that Trump “will never get his wish of bringing Iran’s oil exports to zero.”