U.S. Sanctions Target Iran's Oil Minister and Shadow Fleet

The United States has imposed sanctions on Iran's oil minister and some Hong Kong-flagged ships that form part of a fleet disguising Iranian oil shipments. The sanctions aim to curb Iran's oil exports, a major revenue source for its military, as tensions rise between Iran and the U.S.

The United States intensified its economic pressure on Iran by imposing sanctions on the country's oil minister, Mohsen Paknejad, along with several Hong Kong-flagged vessels involved in clandestine Iranian oil shipments, according to a Treasury Department announcement.

Paknejad is accused of managing the export of Iranian oil valued at tens of billions of dollars annually, with significant revenues directed to Iran's armed forces. The U.S. Treasury also targeted vessel owners/operators transporting Iranian oil to China or sourcing it from storage there, with operations spanning India and China.

Iran's military employs a covert fleet to obscure the shipment of oil worth billions to China, crucial in sustaining its financial channels. Among the vessels sanctioned are the Hong Kong-flagged Peace Hill, Iran-flagged Polaris 1, and the Seychelles-registered Fallon Shipping Company Ltd. The U.S. Department of State further designated three entities and three vessels as blocked property.

(With inputs from agencies.)