Trump Treasury Department Constricts Iran's 'Ghost Fleet'

President Donald Trump’s Treasury Department, led by Treasury Secretary Scott Bessent, has announced a series of measures tightening sanctions on Iran’s illicit oil sales via its ‘Ghost Fleet.’

Iran has recently expanded efforts to circumvent US-imposed oil exports by covertly shipping Iranian oil through a network of foreign tankers colloquially referred to as Iran’s  ‘Ghost Fleet.’

The latest measures come after Secretary of State Marco Rubio imposed a number of sanctions on the Ghost Fleet earlier this February. 

According to the Treasury Department, Iran has harnessed its illicit oil trade to generate billions of dollars that it subsequently funnels to its military and proxy groups.

“Iran continues to rely on a shadowy network of vessels, shippers, and brokers to facilitate its oil sales and fund its destabilizing activities,” said Secretary of the Treasury Scott Bessent. “The United States will use all our available tools to target all aspects of Iran’s oil supply chain, and anyone who deals in Iranian oil exposes themselves to significant sanctions risk.”

Secretary Bessent explained the latest sanctions are designed to deprive Iran of revenue from its petroleum and petrochemical sectors and are part of President Trump’s ‘maximum pressure’ policy on Iran and its proxies.

Sanctions target oil brokers in the United Arab Emirates (UAE) and Hong Kong, tanker operators and managers in India and People’s Republic of China (PRC), the head of Iran’s National Iranian Oil Company, and the Iranian Oil Terminals Company (IOTC).

The US previously sanctioned Iran’s oil sector in 2018 to dissuade the country from financing terrorist organizations like Hezbollah and Hamas, cartel activity, and perfidious nuclear development.

However, Iran has managed to skirt such sanctions through its ‘Ghost Fleet,’ prompting initial sanctions from President Joe Biden and the State Department’s actions earlier this February. 

One report from the United Against Nuclear Iran (UANI) nonprofit outlines the extent of the ‘Ghost Fleet’ scheme, which includes nearly 200 Panamanian vessels.

Secretary Rubio previously led congressional efforts to combat the ghost fleet. 

Then-Senator Rubio and Senator Bob Casey (D-PA) communicated Iran’s illegal operation to Panamanian authorities, which began to investigate and remove suspected ships from Panamanian ports.

US-Iran tensions have reached unprecedented levels, as the latter has increased hostile activity against the former and its allies since Hamas’ October 7th attacks.