US Sanctions 22 Vessels and 27 Companies in Iran's Shadow Fleet

The US Treasury Department announced sanctions against 22 vessels and 27 companies linked to Iran's shadow fleet, in an effort to curb the shipment of Iranian crude oil, petroleum and petrochemical products to markets in South and East Asia. The Office of Foreign Assets Control (OFAC) noted that these vessels, many of them aging, were used to evade restrictions on Iranian oil trade.

Among the sanctioned vessels is the STARWAY, flying the Panamanian flag, which according to the Treasury carried more than three million barrels of Iranian naphtha since 2025, and the GAS LUCKY, flagged in the Bahamas, which moved more than 500,000 barrels of ethylene in the same period. Also named were the PARITOSH, flagged in the Comoros, with more than 100,000 barrels of bitumen carried in 2026, and the BITU, flying the Panamanian flag, which transported 170,000 barrels this year alone. The measures also targeted ship operators, maritime management firms and trading companies based in Turkey, China, the United Arab Emirates, the United Kingdom and the Marshall Islands.

The sanctions were applied under Executive Order 13902, which targets Iran's oil sector and its associated financial networks, as part of Operation Economic Outcast, launched in August 2026. The Treasury warned that companies 50% or more owned by sanctioned entities will also be subject to restrictions, and that foreign financial institutions facilitating transactions with those parties could face secondary sanctions. At the same time, the Treasury delisted the vessels HAKUNA MATATA and PINOCCHIO after they were sold to non-sanctioned operators, while the State Department announced additional sanctions against 10 entities, six individuals and five more vessels.

Days later, on October 21, the Treasury expanded the crackdown with a new round of sanctions under the same Operation Economic Outcast, this time targeting a law firm, shipping agents and nine vessels. The law firm Karnakis and Karnakis, with offices in Greece and Panama, was cited for having set up shell companies for years to conceal ownership of vessels carrying Iranian oil, petrochemicals and steel, including links to the ship operator Roxette Maritime Shipping and Trading S.A., which was attributed seven Panamanian-flagged cargo vessels, among them ANEMOS, GLORIS and PRIDE.

Also sanctioned were the shipping agencies Amigoz Singapore PTE. Ltd. and the UAE-based Whales Shipping Line LLC, accused of facilitating the movement of Iranian cargo through international ports; the support vessels WHALES DIAMOND and WHALES PEARL, owned by the latter, were identified as blocked property. Treasury Secretary Scott Bessent warned that those who support the Iranian regime will be found and sanctioned, whether at sea or working out of a law office. The Financial Crimes Enforcement Network (FinCEN) also reported that it issued an administrative subpoena to investigate a Greek bank over possible ties to Iran, and requested information from six other European banks regarding their relationships with sanctioned Iranian financial institutions.