The measures aim to further restrict the Iranian regime’s access to revenue generated from the oil and petrochemical sectors, which Washington says is used to support military activities and actions that contribute to regional instability.

Targeting Iran’s Oil transport network

State Department spokesperson Thomas Pigott said Friday’s measures directly target Iran’s “illicit oil economy” by focusing on key entities, individuals and vessels that form the core of Tehran’s oil and petrochemical transportation network.

He said the State Department had imposed sanctions on eight entities and identified eight vessels as blocked property due to their direct involvement in transporting Iranian petroleum and petrochemical products.

Additional sanctions measures

Pigott added that the Department had also designated three entities and one individual linked to the trade and facilitation of these products. He noted that the actions build on sanctions imposed a day earlier by the US Department of the Treasury against major participants in a large Iranian oil sales network.

According to Pigott, the network moved millions of barrels of oil worth billions of dollars through a series of Hong Kong-based front companies used to manage storage, shipping and sales operations.

Funding regional activities

The US government said revenues generated through these networks help finance the Islamic Revolutionary Guard Corps (IRGC) and the Armed Forces General Staff (AFGS), providing resources that Washington says contribute to regional instability across the Middle East.

Warning to facilitators

Pigott stressed that the United States would continue to take action against any entity or jurisdiction that facilitates the trade or enables the Iranian government’s activities. He warned that engaging in transactions with or providing support to Iran’s energy sector carries a significant risk of exposure to US sanctions.

Rewards for Information

He also noted that the State Department’s Rewards for Justice Programme continues to offer up to US$15 million for information that helps disrupt the financial networks and illicit revenue streams supporting the IRGC and its global affiliates.