Iran Unhappy with Latest US Sanctions on Its Petroleum Industry

Esmaeil Baqaei, the spokesman for the Iranian Foreign Ministry, on Sunday condemned the fresh sanctions the US had imposed on Iran’s petroleum and petrochemical sectors in response to Tehran’s October 1 missile attack on Israel.

Baqaei strongly condemned the “unlawful and unjustifiable” US sanctions on Iran’s energy sector.

National Security Advisor Jake Sullivan on Friday announced: “On October 1, Iran launched a ballistic missile attack against Israel. This attack targeted Israel’s most populated city, Tel Aviv, and could have killed hundreds if not thousands of innocent people. Fortunately, the attack was defeated and rendered ineffective thanks to the US military working in partnership with Israeli Defense Forces. Following that reckless attack, we made clear that Iran would face severe consequences.”

“Today, the Departments of the Treasury and State have announced new and significant measures to more effectively target Iran’s energy trade,” Sullivan continued. “The new designations today also include measures against the ‘Ghost Fleet’ that carries Iran’s illicit oil to buyers around the world. These measures will help further deny Iran financial resources used to support its missile programs and provide support for terrorist groups that threaten the United States, its allies, and partners.”

The Office of Foreign Assets Control, a division of the US Treasury Department, has designated ten entities across various jurisdictions and identified seventeen vessels as blocked property due to their involvement in the shipment of Iranian petroleum and petrochemical products in support of the National Iranian Oil Company (NIOC) and Triliance Petrochemical Co. Additionally, the US Department of State has designated six entities and identified six vessels as blocked property for knowingly participating in significant transactions related to the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran.

US officials have stated that these actions collectively target a substantial portion of the shadow fleet of tankers and illicit operators responsible for transporting the Iranian regime’s petroleum exports. NIOC was designated on October 26, 2020, for its financial support to Iran’s Islamic Revolutionary Guard Corps – Qods Force, while Triliance was designated on January 23, 2020, for facilitating the sale of Iranian petroleum products from NIOC.

Highlighting the US “negative and destructive” role in upsetting the West Asia’s security and stability, spokesman Baqaei said, “The US, known as the major political sponsor and the main supplier of arms used by the Zionist regime in the genocide in Gaza and aggression against Lebanon, is the (Israeli) regime’s accomplice and complicit in the commitment of the most heinous international crimes.”

The US sanctions policy is primarily managed and enforced by the Office of Foreign Assets Control (OFAC) within the Department of Treasury. OFAC collaborates with various agencies, including the State Department, to identify, investigate, and impose penalties for violations of sanctions. Additionally, OFAC is responsible for administering licenses that exempt certain otherwise prohibited activities, which can be categorized as general—allowing specific types of activities without requiring individual approval—or specific—granted to particular entities for designated activities. Other agencies that play a role in the administration of certain sanctions include the State Department, which regulates visa restrictions, arms sales, and foreign aid, and the Department of Commerce, which oversees export controls.

The evidence indicating that economic sanctions inflict significant damage on civilian populations is compelling. Comprehensive sectoral sanctions are recognized for their detrimental effects on a nation’s overall economic development, often leading to or extending periods of recession and even depression. Furthermore, sanctions impede access to vital resources, including food, energy, and medical supplies; obstruct humanitarian aid; and consequently, contribute to increased levels of poverty, hunger, disease, and a high incidence of preventable fatalities.

Secretary of State Anthony Blinken said on Friday, “The United States is committed to curtailing Iran’s sources of revenue for its malign activities. As long as Iran devotes its energy revenues to funding attacks on our allies, supporting terrorism around the world, and pursuing other destabilizing actions, we will continue to use all the tools at our disposal to hold it accountable. These measures will be reinforced by ongoing close coordination with partners and allies to address and counter Iran’s actions.”

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