US expands sanctions vs Iran’s oil industry over Israel strikes

WASHINGTON — The United States (US) hit Iran’s oil and petrochemicals sectors with new sanctions Friday in response to Tehran’s October 1 attack against Israel, designating dozens of new companies and firms.

The Treasury Department said it was going after Iran’s “shadow fleet” of ships involved in selling Iranian oil in circumvention of existing sanctions, designating 10 companies and 17 vessels as “blocked property” over their involvement in shipments of Iranian petroleum and petrochemical products.

WASHINGTON, DC – OCTOBER 11: US President Joe Biden, accompanied by US Army Corps of Engineers Chief of Engineers and Commanding General William Graham, Jr. (L), Homeland Security Secretary Alejandro Mayorkas (2nd-L), Energy Secretary Jennifer Granholm (R), takes a question from a reporter after giving an update on the government’s response to Hurricanes Milton and Helene in the Roosevelt Room of the White House on October 11, 2024, in Washington, DC. Biden also touched on the the wave of online misinformation that has muddled the public’s understanding after two strong storms have impacted the southeast of the country. Andrew Harnik/Getty Images/Agence France-Presse

The State Department also announced it was slapping sanctions on six other firms and six ships for “knowingly engaging in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran.”

“Today’s sanctions target Iranian efforts to channel revenues from its energy industry to finance deadly and disruptive activity — including the development of its nuclear program, the proliferation of ballistic missiles and unmanned aerial vehicles,” Treasury Secretary Janet Yellen said in a statement.

READ: US says new sanctions on Iran coming soon

The sanctions form part of the US response to Iran’s attack, in which it launched some 200 ballistic missiles against Israel in retaliation for the killing of Tehran-backed militant leaders and a general from Iran’s Revolutionary Guards.

Israel has said its response to Iran’s second direct attack against its territory this year would be “deadly, precise, and surprising.”

US President Joe Biden told reporters last week that Israel should consider “other alternatives than striking oil fields,” amid reports it was planning to do so.

READ: Iran slaps sanctions on US, UK over Israel support

His national security advisor Jake Sullivan said Friday that sanctions had been announced after the president had consulted with America’s allies and partners.

“These measures will help further deny Iran financial resources used to support its missile programs and provide support for terrorist groups that threaten the United States, its allies, and partners,” Sullivan said in a statement.

Secretary of State Antony Blinken said Washington had made clear after the October 1 attack that Tehran would face consequences.

“To that end, we are taking steps today to disrupt the flow of revenue the Iranian regime uses to fund its nuclear program and missile development, support terrorist proxies and partners, and perpetuate conflict throughout the Middle East,” he said in a statement.