U.S. Imposes New Sanctions On Oil Network That Ships Iranian Oil to China

On February 6th, 2025, the U.S. Treasury placed sanctions on Sepehr Energy Jahan Nama Pars (Sepehr Energy), a front firm that operates under the Iranian military.

Using this front company, Iran was shipping millions of barrels of Iranian crude oil valued at hundreds of millions of dollars, to the People’s Republic of China (PRC).

With investments in methanol and ammonia factories, Sepehr Energy, which was founded in 2010, has been associated with influential people in Iran’s petrochemical industry.

Additionally, transport management companies and a covert fleet of oil tankers engaged in the transportation of Iranian oil have been placed on a sanction list, the first such measure under President Donald Trump’s maximum pressure policy on Iran.

Three oil tankers registered under the flags of Hong Kong and Panama have also been sanctioned, along with many other individuals.

Reasoning Behind These New Sanctions

According to OFAC, which detailed the rationale behind these sanctions, “Iran generates the equivalent of billions of dollars each year via oil sales to fund its destabilizing regional activities and support of multiple regional terrorist groups, including Hamas, the Houthis, and Hezballah.”

Iran’s Armed Forces General Staff (AFGS) is accused of employing front company networks of foreign-based brokers and corporations to facilitate oil sales and transit.

Sepehr Energy and its subsidiary firms, which operate under the AFGS, are accused of employing fabricated shipping paperwork and other “deceitful evasion methods,”, to ship Iranian oil to international clients notably China, India, and the United Arab Emirates (UAE), and simultaneously hide the origins of sanctioned Iranian oil.

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Why Did President Trump Promise These New Sanctions?

During his campaign, President Trump stated that he would resume his maximum pressure policy against Iran once he took office.

The government has stated that the primary motivator is concern that Tehran may be closer to a nuclear weapon than ever before.

The United States Treasury has acted in response to President Donald Trump’s National Security Presidential Memorandum. This memorandum instructs the Treasury Department and other government agencies to exert maximum economic pressure on Iran.

The goal is to reduce Iran’s oil exports to zero, compelling the country to abandon its nuclear weapons program and counter its influence in the Middle East.

Trump signed a memorandum reimposing the tough policy of sanctions against Iran, similar to those he levied during his first term, adding he hoped he would not “have to use it very much.”

Therefore, Islamic Revolutionary Guard Corps (IRGC) accounts, shell corporations, and financial sources will be targeted by the United States.

Tighter regulations will apply to dual-use products that have both military and civilian uses.

Those engaged in terrorism financing, cyber threats, and espionage will face prosecution by the US Department of Justice on behalf of Iran.

The State Department will spearhead a global effort to pressure Iran’s allies, limit Iranian officials’ travel, and lessen Iran’s influence in international organizations.

These sanctions are implemented by the Departments of Treasury, State, and Justice According to the Trump administration, these actions are required to safeguard both national and allied security interests.