By Timothy Gardner
WASHINGTON (Reuters) -The U.S. Treasury said on Thursday it is imposing new sanctions on a few individuals and tankers helping to ship millions of barrels of Iranian crude oil per year to China, in an incremental move to boost pressure on Tehran.
They were the first U.S. sanctions on Iran’s oil after U.S. President Donald Trump this week vowed to bring Iran’s crude exports to zero as the U.S. tries to prevent the country from obtaining a nuclear weapon.
The Treasury said the oil was shipped on behalf of Iran’s Armed Forces General Staff and its front company Sepehr Energy, which the U.S. designated in late 2023. The sanctions target individuals and companies in countries including China, India, and the United Arab Emirates, the department said.
Treasury said it imposed blocking sanctions on the Panama-flagged CH Billion tanker and the Hong Kong-flagged Star Forest tanker for their role in shipping Iranian oil to China.
The U.S. said the tankers “onboarded” Iranian crude from storage in China as part of a scheme involving Iran’s military, which stands to profit from the sale of the oil.
The sanctions block access of the individuals and entities to any of their assets in the United States and prohibit U.S. foreign assistance.
“We will use all tools at our disposal to hold the regime accountable for its destabilizing activities and pursuit of nuclear weapons that threaten the civilized world,” Tammy Bruce, a State Department spokesperson, said about the sanctions.
Iran’s mission to the United Nations in New York did not immediately respond to a request for comment.
Iran’s President Masoud Pezeshkian this week urged OPEC members to unite against possible U.S. sanctions.
‘TACTIC, NOT A STRATEGY’
Jeremy Paner, a sanctions lawyer, said the move was a “tactic, not a strategy” in Trump’s desire to greatly reduce oil exports since it did not go after banks in China that allow energy transactions. Paner, a partner at Hughes Hubbard, said it was similar to a series of sanctions imposed over the last two years by former President Joe Biden.
The sanctions designated Iranian national Arash Lavian, who the U.S. said helped support Sepehr.
The U.S. also designated Marshal Ship Management Private Limited.
In addition, Young Folks International Trading Co and Limited and Lucky Ocean Shipping Limited were designated for operating in Iran’s petroleum sector.
“These kinds of sanctions can be effective, but it’s not going to drive the exports down to zero,” said Paner, a former lead sanctions investigator at Treasury’s Office of Foreign Assets Control.
Fernando Ferreira, the head of geopolitical risk at Rapidan Energy Group, said the sanctions were “an opening shot against China and Iran, designed to put Beijing on notice without disrupting backchannel discussions to explore the potential for a nuclear deal.”
(Reporting by Timothy Gardner and Doina Chiacu in Washington; additional reporting by Michelle Nichols in New YorkEditing by Marguerita Choy)
