US Treasury Imposes Sanctions on International Network Involved in Shipping Iranian Oil to China

February 6, 2025 TruthUSA

Oil sales yield billions of dollars annually, funding Iran’s military expansion and supporting terrorist organizations like Hamas.

On Thursday, U.S. Treasury Department officials announced financial sanctions on an international network accused of transporting Iranian oil to China.

The sanctions target various entities and individuals in China, India, and the United Arab Emirates (UAE), along with several oil tankers involved in this trade. According to the Treasury, these oil sales provide Iran with billions of dollars each year to enhance its military capabilities and back terrorist proxies such as Hamas, Hezbollah, and the Houthis.

The oil was transported on behalf of Iran’s Armed Forces General Staff and a front company known as Sepehr Energy. Treasury officials revealed that Sepehr employed deceptive practices, including forged maritime documents, to disguise the oil’s Iranian origin before selling it to global buyers, China included.

Treasury Secretary Scott Bessent stated that Iran has utilized its oil income to advance ballistic missiles, drones, and its nuclear agenda. A report from the International Atomic Energy Agency in November 2024 indicated that Iran is expanding its stockpile of near-weapons-grade enriched uranium, seemingly seeking advantage ahead of President Donald Trump’s potential return to office.

“The United States remains determined to actively target any efforts by Iran to obtain funding for these harmful activities,” Bessent declared in a statement regarding the sanctions.

On February 4, Trump signed a memorandum reinstating the “maximum pressure” campaign against Iran. This initiative, first launched during Trump’s initial term, seeks to prevent Iran from acquiring nuclear weapons, limit its ballistic missile program, and halt its support for terrorist factions.

The presidential memorandum specifically instructs the Treasury and State Departments to “drive Iran’s oil exports to zero, including shipments of Iranian crude to the People’s Republic of China.”

Additionally, the memo directs the Treasury Department to thwart Iran’s attempts to use Iraq’s financial system to evade sanctions and to ensure Gulf nations do not become transshipment hubs for Iranian oil.

Since Trump withdrew from the 2015 nuclear agreement, U.S. sanctions on Iran’s energy sector have been enforced. He reinstated most economic restrictions in 2018. By the time Trump concluded his term, Iranian oil sales had reached historic lows due to the combination of U.S. sanctions and diminished global demand amid the COVID-19 pandemic.

Nevertheless, Iran’s oil exports have since recovered, largely driven by China’s growing demand for Iranian crude. Following Russia’s full-scale invasion of Ukraine in 2022, China’s independent refineries shifted towards discounted Russian oil, prompting Iran to offer even steeper discounts to remain competitive in the Chinese market.

The latest report from the U.S. Department of Energy reveals that China imported nearly 90 percent of Iran’s crude oil and condensate exports in 2023—a significant rise from only 25 percent in 2017, prior to the reimposition of sanctions by Trump. Other significant buyers included Syria, the UAE, and Venezuela.

During a meeting with Israeli Prime Minister Benjamin Netanyahu on Tuesday, Trump expressed that he “hated” enforcing the maximum pressure campaign during his first term as much as he feels now but is open to negotiation if Iran abandons its nuclear aspirations.

“I say this to Iran, who’s listening very intently: I would love to be able to make a great deal. A deal where you can get on with your lives,” Trump stated at the news conference, adding that he desires Iran to be “peaceful and successful.”

The president cautioned that it would be “very unfortunate” if Iran continues its nuclear weapons program, but he suggested that Iran could achieve significant benefits if it can assure him it will not pursue nuclear armament.

Should that occur, Trump commented, “I believe they’re going to have an unbelievable future.”

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