On Tuesday, the United States announced a new round of sanctions targeting a shipping network allegedly responsible for transporting millions of barrels of Iranian crude oil to China. The move came a day after Iran International published an investigative report based on confidential business records detailing the network’s operations.
According to the US State Department, the shipments—valued at billions of dollars—were made on behalf of Iran’s Armed Forces General Staff (AFGS) through a front company, Sepehr Energy Jahan Nama Pars (commonly referred to as Sepehr Energy).
The report by Iran International indicated that Sepehr Energy operated under the direction of the Iranian military and set up a web of shell companies to bypass sanctions and facilitate the export of Iranian oil to Asian markets. The network also conducted business with a Dutch firm that was reportedly aware of Sepehr Energy’s links to the Iranian government.
The documents and internal emails reviewed by Iran International revealed a complex system designed to obscure the military connections and route the oil through foreign intermediaries.
In a separate statement, the US Treasury Department said that nearly two dozen companies across various jurisdictions were designated under the new sanctions. These firms are said to be engaged in multiple facets of Iran’s illicit global oil trade.
Among those sanctioned was Xin Rui Ji, a company mentioned in Iran International’s report.
The Treasury underscored that Iran allocates billions of dollars’ worth of oil annually to its armed forces to supplement their budgets. These funds are then channelled into the development of ballistic missiles and drones, as well as the financing of regional proxy groups.
The State Department added that proceeds from these oil sales help fund Iran’s missile and nuclear programmes, as well as militant groups including the Houthis, who have carried out attacks in the Red Sea, against the US Navy, and in Israel.
US Secretary of the Treasury, Scott Bessent, remarked, “Today’s action highlights our ongoing efforts to increase pressure on Iran’s oil trade—the regime’s primary revenue stream—used to support its destabilising and violent activities. The United States will persist in targeting these sources of funding as long as Iran continues its support for terrorism and the proliferation of lethal weapons.”
