The Treasury Department on Friday expanded sanctions pressuring the Iranian regime, targeting a network of “shadow fleet” vessels and associated companies that have moved Iranian oil.
The Treasury’s Office of Foreign Assets Control said in a news release that the plan to target the shadow fleet is retribution for the Iranian government’s treatment of peaceful protesters and for shutting off internet access to “conceal its abuses against the Iranian people.”
OFAC is targeting nine vessels transporting Iranian oil to foreign markets because it is a key revenue stream for Tehran.
“This revenue, which rightfully belongs to the Iranian people, is instead diverted to fund its regional terrorist proxies, weapons programs, and security services, instead of the basic economic services the Iranian people have bravely demanded,” the release said.
Earlier Friday, President Donald Trump threatened Iran with an “armada” before leaving the World Economic Forum in Davos, Switzerland.
“We have a lot of ships going that direction, just in case.… I’d rather not see anything happen, but we’re watching them very closely,” Trump told reporters aboard Air Force One.
Treasury Secretary Scott Bessent said the action was part of a campaign under Executive Order 13902, which sanctioned key sectors of Iran’s economy, to apply “maximum economic pressure” on Tehran by squeezing its oil sector.
“The Iranian regime is engaged in a ritual of economic self-immolation—a process that has been accelerated by President Trump’s maximum pressure campaign,” Bessent said in the release. “Tehran’s decision to support terrorists over its own people has caused Iran’s currency and living conditions to be in free fall.”
The newly sanctioned vessels, many registered under flags of convenience, have been linked to significant shipments of Iranian oil derivatives to ports in Asia, East Africa, and the Middle East. OFAC also designated the corporate owners or managers of those vessels, effectively placing their U.S. property and interests off-limits without special authorization.
According to the release, violating the newly implemented sanctions could result in civil or criminal penalties against Americans and foreign nationals.
The sanctions follow the Iranian government’s announcement that the weekslong protests are “over now” with a disputed death toll estimated to be around 4,000.
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While some limited connectivity has returned, officials have warned that international web access may be restricted until March as the government explores a permanent “whitelist-based” internet model.
Protests erupted as a result of the collapsing Iranian economy and the rapid devaluation of the Iranian rial. The movement quickly shifted into a rebellion against Supreme Leader Ali Khamenei.
