The US Treasury sanctioned individuals, networks and 17 vessels on Thursday for transporting Iranian crude oil, oil products and petrochemicals. The move tightens a blockade that has already left Iran with only about 20 million barrels of crude outside its reach, though one analyst said the impact will be muted.
The US Treasury Department sanctioned individuals, networks and 17 vessels on Thursday for transporting Iranian crude oil, oil products and petrochemicals. The action falls under "Operation Economic Outcast," a campaign designed to cut Iran's funding for its war with the US, missile construction, cyberattacks and the Islamic Revolutionary Guard Corps.
According to Reuters, a Treasury official told reporters the action marks the most significant blow yet to Tehran's maritime network, "neutralizing the vast majority of the shadow fleet."
Blockade squeezes Iran's remaining barrels
The sanctions follow the US reimposing its blockade of Iranian ports on July 14, after a memorandum of understanding between Tehran and Washington to end the war collapsed. A Treasury official said Iran has only about 20 million barrels of crude oil left on vessels outside the blockade, moored off Singapore, Malaysia and China. The world uses about 100 million barrels of oil a day, the official noted.
A second Treasury official said Iran has stopped loading and offloading crude oil vessels because of the blockade and sanctions. The targeted vessels include the Comoros-flagged Paritosh, the Panama-flagged Bitu and the Bahamas-flagged Gas Lucky.
Analyst questions the sanctions' impact
An analyst said the fact that the US is sanctioning vessels after Iran has delivered virtually all of its oil at sea means the impact will be muted. Brett Erickson, a managing principal at Obsidian Risk Advisors, described the action as economic warfare conducted in the rearview mirror, meant to generate headlines rather than results.
President Donald Trump said on social media Thursday that the US is having productive discussions with Iran over the war that began on February 28. He added that the US will not attack Iran before the midterm elections on November 3.
Source: Commodities & Futures News
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