US sanctions 17 tankers in Iran shadow fleet crackdown

The U.S. Treasury Department announced new Iran-related sanctions on Thursday, Oct. 8, aimed at what it called the "remnants" of Tehran's shadow fleet, the aging tankers Iran uses to ship oil to foreign buyers. Treasury said the action "effectively neutralizes the vast majority of Iran's remaining shadow fleet network."Forth

Reuters first reported that the Treasury website listed dozens of people, entities and vessels. The Sunday Guardian, citing the sanctions notice, put the total at 27 companies, six individuals and 22 vessels. Treasury's own press release says it acted against 17 shadow fleet vessels that carried millions of barrels of Iranian crude oil, petroleum products and petrochemicals to buyers in South and East Asia. The release does not explain the gap between the two vessel counts.sundayguardianlive+3

Who was targeted

The ships are registered in more than a dozen jurisdictions and are run through what Treasury described as "an intricate web of international front companies." The listed vessels include the Comoros-flagged bitumen tanker Paritosh and the Panama-flagged Starway, which Treasury said has carried more than three million barrels of Iranian naphtha since 2025. Iran International reported that the Cameroon-flagged Shenzhen has moved more than 3.5 million barrels of Iranian crude since November 2025.Iran International+1

According to the Sunday Guardian, OFAC said the designations reach shipping operators and trading firms in India, Türkiye, China, the United Arab Emirates, the United Kingdom and the Marshall Islands. The outlet also reported that several Indian nationals and one Turkish citizen were among those sanctioned. Treasury also took two vessels off its sanctions list, the Hakuna Matata and the Pinocchio, after they were sold to non-sanctioned operators aligned with the United States.Forth+1

The sanctions were issued under Executive Order 13902. They freeze the targets' assets under U.S. jurisdiction, and foreign banks that knowingly handle significant transactions for the designated parties could face secondary sanctions.Iran International

Revenue pressure amid conflict

On a call with reporters, a Treasury official said, "Treasury is cutting off the regime's last major source of illicit revenue and strengthening international pressure to hold Tehran accountable." The official said about 20 million barrels of Iranian crude were still on vessels outside the U.S. blockade of Iranian ports. Washington reimposed that blockade on July 14 after a memorandum of understanding between the two countries collapsed.sundayguardianlive

Treasury launched Operation Economic Outcast on Aug. 24. Treasury Secretary Scott Bessent called it "an economic D-Day." The campaign added shipping, aviation, gold, digital assets and technology to the sectors of Iran's economy that can be sanctioned. On Oct. 1, the campaign expanded to Iran's car and rail industries, including the automakers Iran Khodro and SAIPA.paulhastings.com+1

The latest action comes as tanker attacks have cut traffic through the Strait of Hormuz to its lowest level in more than two months, according to Reuters reporting cited by the Sunday Guardian. Treasury said vessels regularly join and leave the network, and it pledged to keep watching for attempts to evade the sanctions.Iran International+1