The United States has intensified its campaign against Iran’s energy sector. On Thursday, the Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions. These sanctions target over 50 individuals, companies, and vessels involved in Iranian oil and LPG exports. Consequently, officials aim to dismantle a network that moves billions of dollars in petroleum sales. This network relies heavily on Chinese and regional intermediaries.

Treasury Secretary Scott Bessent said, “The Treasury Department is degrading Iran’s cash flow by dismantling key elements of Iran’s energy export machine.”

China in the Spotlight

Moreover, the sanctions focus on China’s Rizhao Shihua Crude Oil Terminal. The terminal handles up to 56 million tonnes of crude annually, more than one million barrels per day. It supplies Iranian crude to Chinese refineries. The facility is jointly owned by subsidiaries of Sinopec.

By targeting Rizhao, Washington shows it will confront even quasi-state Chinese entities that assist Tehran. Officials expressed frustration because Chinese refiners continue to import Iranian oil, often disguised through ship-to-ship transfers or rebranded as coming from other countries.

Indian Nationals and Regional Players Sanctioned

In addition, the sanctions reach India, the Marshall Islands, and Pakistan. Varun Pula owns Bertha Shipping Inc., which operates the PAMIR. Since July 2024, the ship transported nearly four million barrels of Iranian LPG to China. Similarly, Iyappan Raja owns Evie Lines Inc., running the SAPPHIRE GAS, which delivered over one million barrels of Iranian LPG to China since April 2025. Meanwhile, Soniya Shrestha manages Vega Star Ship Management Private Limited and the NEPTA, which delivered Iranian LPG to Pakistan since early 2025.

All three were sanctioned under Executive Order 13902, which targets Iran’s energy, shipping, and financial sectors.

Disrupting Iran’s Shadow Fleet

Furthermore, the Treasury described Iran’s reliance on a “shadow fleet” of tankers. These ships frequently change names, flags, and ownership to hide the cargo’s origin. Combined with offshore terminals and complex financial intermediaries, this system helps Tehran maintain exports despite restrictions.

Bessent said, “Under President Trump, this administration is disrupting the regime’s ability to fund terrorist groups that threaten the United States.” The sanctions freeze all US-based assets of the designated parties. In addition, US persons and businesses cannot engage with them. Companies owned 50 percent or more by sanctioned entities are automatically blocked.

Geopolitical Implications

Finally, the sanctions come amid rising tensions with Beijing. China remains the largest importer of Iranian crude, often purchasing at discounts through intermediaries. The Treasury emphasized that the measures aim to change behavior. Sanctioned entities can petition for removal if they cease prohibited activities. However, Iranian exports continue to reach Asian markets. Therefore, Washington signals it will continue efforts to cut Tehran’s oil revenue.