The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned nearly two dozen firms operating in multiple jurisdictions in virtually every aspect of Iran’s illicit international oil trade, according to a press release on May 13. The Iranian government allocates billions of dollars’ worth of oil annually to its armed forces to supplement their budget allocations, underwriting the development of ballistic missiles and unmanned aerial vehicles, as well as financing regional terrorist groups. Iran’s Armed Forces General Staff (AFGS) and its main commercial affiliate, Sepehr Energy Jahan Nama Pars Company (Sepehr Energy), continue to establish front companies and rely on buyers and facilitators to enable their sanctioned oil trade. Since the start of this administration, Treasury has rapidly moved to implement President Trump’s maximum pressure campaign on Iran and have taken 19 actions, sanctioning 253 individuals, entities, and vessels related to Tehran and its proxies.
“Today’s action underscores our continued focus on intensifying pressure on every aspect of Iran’s oil trade, which the regime uses to fund its dangerous and destabilizing activities,” said Secretary of the Treasury Scott Bessent. “The United States will continue targeting this primary source of revenue, so long as the regime continues its support for terrorism and proliferation of deadly weapons.”
Today’s action is being taken pursuant to the counterterrorism authority Executive Order (E.O.) 13224, as amended by E.O. 13886 (“E.O. 13224, as amended”). This action is in furtherance of National Security Presidential Memorandum-2, which directs the imposition of maximum economic pressure on the Iranian regime.
OFAC designated Sepehr Energy pursuant to E.O. 13224, as amended, on November 29, 2023, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL). OFAC had previously designated MODAFL on March 26, 2019, pursuant to E.O. 13224, for providing material support to Iran’s Islamic Revolutionary Guard Corps-Qods Force.
The full announcement can be found here.
