The Trump administration is imposing new sanctions targeting Iran’s elusive “shadow fleet” of oil tankers, escalating pressure on Tehran just one day before peace negotiations are scheduled to resume.
Washington previously eased sanctions on Iranian crude in an effort to counteract surging oil and gas prices driven by the immense disruption in energy flows from the closure of the Strait of Hormuz. That temporary relief, however, expired last weekend.
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Friday afternoon, the Treasury Department’s Office of Foreign Assets Control issued sanctions on an independent Chinese teapot refinery as well as dozens of shipping firms and vessels associated with Iran’s shadow fleet.
A shadow fleet is the name given to the hundreds, if not thousands, of illegal tankers that Iran, Russia, and Venezuela operate in trying to evade Western sanctions and legal requirements.
The exact number of ships currently part of this fleet is unknown, but experts estimate there are roughly 1,000 vessels transporting oil and other commodities in violation of Western sanctions.
These tankers are often older and beyond their expected shelf life, with crews attempting to distort information about their location, activity, where they’re coming from, and their intended port.
The Trump administration has said this shadow fleet has provided a “financial lifeline to Iran’s unstable regime,” one it intends to cut off as tensions in the Middle East grow.
Friday’s sanctions are a part of the administration’s “Economic Fury” campaign, a reference to Operation Epic Fury.
“Economic Fury is imposing a financial stranglehold on the Iranian regime, hampering its aggression in the Middle East, and helping to curtail its nuclear ambitions,” Treasury Secretary Scott Bessent said in a statement.
“At President Trump’s direction, Treasury will continue to constrict the network of vessels, intermediaries, and buyers Iran relies on to move its oil to global markets,” Bessent added. “Any person or vessel facilitating these flows—through covert trade and finance—risks exposure to U.S. sanctions.”
Specifically, the administration is sanctioning the Hengli Petrochemical (Dalian) Refinergy Co., Ltd., a Chinese independent teapot refinery that officials say has purchased billions of dollars worth of Iranian petroleum. The term teapot refinery refers to a smaller, privately owned oil refinery that has limited and more basic equipment compared to large, state-owned facilities. These refineries are also known for capitalizing on oil that has been made cheaper due to Western sanctions, often coming from countries such as Iran, Russia, or Venezuela.
At least 19 vessels are also facing sanctions for transporting Iranian crude oil, liquified petroleum gas, and other petroleum and petrochemical products to foreign markets, the Treasury said.
This includes Panama-flagged, Hong Kong-flagged, and Barbados-flagged vessels that have allegedly transported Iranian crude to the United Arab Emirates, Bangladesh, and China. Some of the cargoes were shipped as recently as February 2026, the agency said.
Nearly 20 shipping companies are also being sanctioned for operating in Iran’s petroleum or petrochemical sectors.
“Constraining Iran’s maritime trade through the blockade, directly targets the regime’s primary revenue lifelines,” a senior administration official said. “Any person or vessel facilitating these illicit flows —through covert trade and finance—risks exposure to U.S. sanctions.”
AMERICA’S ‘GROWING’ BLOCKADE OF IRAN IS ‘GOING GLOBAL’
The sanctions came just one day before peace negotiations were scheduled to resume between U.S. and Iranian officials.
White House press secretary Karoline Leavitt confirmed on Friday that President Donald Trump’s son-in-law, Jared Kushner, and special envoy Steve Witkoff were headed to Islamabad, Pakistan, for negotiations.
