The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced new actions today targeting Iran's military oil sales, aiming to disrupt the regime's ability to fund its armed forces and mitigate threats to the United States and its regional partners. These measures are part of the ongoing "Economic Fury" campaign, which seeks to exert maximum economic pressure on Iran.
Secretary of the Treasury Scott Bessent emphasized the department's resolve, stating, "The Treasury Department will continue to increase pressure on Iranian oil sales to deprive the Iranian regime and its military of the financial resources it needs to threaten U.S. allies and partners in the Middle East." He added, "We will not allow the Iranian government to increase its oil revenue for the purpose of reconstituting its armed forces and military capabilities." The actions are taken under counterterrorism authority Executive Order 13224, as amended, and align with President Donald J Trump's National Security Presidential Memorandum 2.
Today's designations include five Hong Kong-based companies: Growth Trading Co., Limited, Damai Technology Development Limited, Tida Co., Limited, Mehdiyev Trading Co., Limited, and Worth Seen Energy Limited. These entities are accused of materially assisting, sponsoring, or providing support to Sepehr Energy Jahan Nama Pars Company, the oil sales arm of Iran’s Armed Forces General Staff. Their activities ranged from chartering vessels for crude oil shipments to China, acting as shippers and consignees, facilitating payments for port fees, and procuring refined petroleum products for Iran's National Iranian Oil Company (NIOC).
The Treasury Department has previously disrupted tens of billions of dollars in revenue and frozen nearly half a billion dollars in regime-linked cryptocurrency as part of its comprehensive strategy. The U.S. Department of State's Rewards for Justice program is also offering up to $15 million for information leading to the disruption of the financial mechanisms of the Islamic Revolutionary Guard Corps (IRGC). The Trump Administration is directly targeting Iran's primary revenue stream, warning that any person or vessel facilitating illicit trade risks exposure to U.S. sanctions. This includes foreign companies, airlines, and financial institutions, with potential secondary sanctions for those facilitating Iran's activities.
Treasury recently cautioned against complying with Iranian demands for passage through the Strait of Hormuz, such as "toll" payments, which could also incur sanctions. OFAC's Economic Sanctions Enforcement Guidelines offer further details on enforcement, and individuals providing information about sanctions violations to FinCEN’s whistleblower incentive program may be eligible for awards. OFAC also provides guidance for those seeking removal from its lists, including the Specially Designated Nationals and Blocked Persons List (SDN List). The ultimate goal of these sanctions is not punitive, but to bring about a positive change in behavior from the Iranian regime.