US Tightens Grip with Sanctions on Iran's Oil Minister and Shadow Fleet

The United States has imposed sanctions on Iran's Oil Minister, Mohsen Paknejad, and several Hong Kong-flagged vessels involved in shadowing Iranian oil shipments. This move is part of a strategy to halt Iran's oil exports and disrupt its funding of militant activities, linked to its nuclear ambitions.

The United States has intensified its pressure on Iran by imposing sanctions on the country's Oil Minister, Mohsen Paknejad, and certain Hong Kong-flagged vessels that have been aiding in hiding Iranian oil exports. This development was announced by the Treasury Department on Thursday, as part of an ongoing strategy to curtail Iran's oil exports to prevent funding for nuclear weapon development and militant groups. The approach reflects a continuation of the 'maximum pressure' policy re-imposed by President Donald Trump in February.

The Treasury Department highlighted that Paknejad is responsible for exporting tens of billions of dollars' worth of Iranian oil and has allocated substantial oil resources to Iran's armed forces. In a statement, Treasury Secretary Scott Bessent labeled the Iranian regime's use of oil proceeds as serving alarming self-interests at the cost of the Iranian populace. He asserted that the Treasury is determined to combat any efforts by the regime to finance destabilizing activities.

Additionally, the Treasury has sanctioned owners or operators of vessels in multiple jurisdictions, including India and China. These vessels have been instrumental in shipping Iranian oil to China or removing it from storage. The sanctioned ships include the Hong Kong-flagged Peace Hill and its owner, as well as several other vessels registered in different countries. The U.S. State Department has similarly blocked several entities and vessels as part of this initiative.

(With inputs from agencies.)