Economy February 25, 2026

U.S. Treasury Expands Sanctions on Iran’s Shadow Fleet and Weapons Supply Networks

More than 30 people, companies and vessels designated for facilitating illicit petroleum sales and procurement of missile and weapons components

By Sofia Navarro
U.S. Treasury Expands Sanctions on Iran’s Shadow Fleet and Weapons Supply Networks

The U.S. Department of the Treasury's Office of Foreign Assets Control designated over 30 individuals, entities and ships in a coordinated action targeting Iran's covert oil shipments and networks that obtain materials and machinery for ballistic missile and advanced conventional weapons production. The measures include sanctions on 12 vessels linked to a 'shadow fleet' and several procurement intermediaries in Iran, Türkiye and the United Arab Emirates.

Key Points

  • OFAC sanctioned over 30 individuals, entities and vessels for enabling illicit Iranian petroleum sales and supporting ballistic missile and advanced conventional weapons production.
  • Twelve shadow fleet vessels and their owners or operators were targeted; OFAC identified specific ships and detailed their transport of millions or hundreds of thousands of barrels of various Iranian petroleum and petrochemical products since 2022-2025.
  • Nine individuals and entities in Iran, Türkiye and the UAE were designated for facilitating procurement of precursor chemicals and sensitive machinery for the IRGC and Iran’s Ministry of Defense and Armed Forces Logistics.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced on Wednesday the designation of more than 30 individuals, entities and vessels for their roles in facilitating illicit Iranian petroleum exports and in supporting Iran’s ballistic missile and advanced conventional weapons production.

The move focuses on vessels that have acted as part of Iran’s so-called shadow fleet, carrying Iranian crude and refined products to overseas buyers, and on several networks that have aided the Islamic Revolutionary Guard Corps (IRGC) and Iran’s Ministry of Defense and Armed Forces Logistics in procuring precursor chemicals and sensitive industrial machinery required to restore missile and advanced conventional weapons production capacity.

“Iran exploits financial systems to sell illicit oil, launder the proceeds, procure components for its nuclear and conventional weapons programs, and support its terrorist proxies,” said Secretary of the Treasury Scott Bessent.


Vessels singled out in the designation account for large volumes of Iranian petroleum and petrochemical shipments, according to the Treasury. OFAC identified 12 shadow fleet vessels and their owners or operators, saying these vessels have collectively moved hundreds of millions of dollars' worth of Iranian petroleum and petrochemical products.

Specific vessels and activity cited by the Treasury include:

  • The Panama-flagged HOOT, which OFAC says transported hundreds of thousands of barrels of Iranian liquified petroleum gas to Bangladesh in 2025.
  • The Barbados-flagged OCEAN KOI, described as having carried millions of barrels of Iranian high sulfur fuel oil and condensate since May 2025.
  • The Barbados-flagged NORTH STAR, reported to have moved nearly two million barrels of Iranian high sulfur fuel oil since late 2025.
  • The Comoros-flagged FELICITA, which has transported millions of barrels of Iranian high sulfur fuel oil and naphtha since 2023.
  • The Iran-flagged ATEELA 1 and ATEELA 2, which have carried over 100,000 barrels of Iranian petroleum products for the National Iranian Oil Company since late 2025.
  • The Palau-flagged NIBA, reported to have moved millions of barrels of Iranian liquified petroleum gas, including butane and propane, since 2025.
  • The Vanuatu-flagged LUMA, which OFAC says has transported hundreds of thousands of barrels of Iranian liquified petroleum gas to end users in Bangladesh and Pakistan since late 2025.
  • The Panama-flagged REMIZ, which has carried millions of barrels of Iranian oil to East Asia since 2025.
  • The Palau-flagged DANUTA I, described as transporting millions of barrels of Iranian liquified petroleum gas to East Asia since 2023.
  • The Palau-flagged ALAA, which has moved dozens of Iranian liquified petroleum gas shipments to various jurisdictions, including Türkiye, since 2022.
  • The Panama-flagged GAS FATE, which has transported over a million barrels of Iranian grey ammonia to various jurisdictions since 2024.

OFAC also designated nine individuals and entities based in Iran, Türkiye and the United Arab Emirates that the Treasury says have helped procure precursor chemicals and sensitive machinery for the IRGC and for Iran’s Ministry of Defense and Armed Forces Logistics and their missile and advanced conventional weapons programs.

Among companies named, Iran-based Oje Parvaz Mado Nafar Company is cited for producing unmanned aerial vehicle engines used in the Shahed-131 and Shahed-136 UAVs. The Treasury identified three Türkiye-based firms - Utus Gumrukleme Gida Tekstil Ithalat Ihracat Dis Ticaret ve Sanayi Limited Sirketi, Arya Global Gida Sanayi ve Ticaret Limited Sirketi, and Altis Tekstil Makina Ticaret Limited Sirketi - as having acted as financial intermediaries for Oje Parvaz Mado Nafar Company’s procurement activities.

Two other entities named include Iran-based Adak Pargas Pars Trading Company and UAE-based Mostafa Roknifard Prime Choice General Trading LLC, which the Treasury says have been involved in efforts to procure sodium perchlorate, including for Iranian government customers such as Parchin Chemical Industries.


The Treasury further designated four individuals in Iran for links to Qods Aviation Industries, an element of Iran’s Ministry of Defense and Armed Forces Logistics. Two employees, Mohammad Abedini and Mehdi Zand, are reported to have traveled to Russia on behalf of Qods Aviation Industries to provide support resolving technical issues with Mohajer-series unmanned aerial vehicles supplied to the Russian Federation. Two other employees, Mehrdad Jafari and Ebrahim Shariatzadeh, have traveled to Venezuela on behalf of Qods Aviation Industries to provide unmanned aerial vehicle technical support, according to OFAC.

Under U.S. sanctions law, all property and interests in property of the designated persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. The Treasury also noted that, in 2025, OFAC designated more than 875 persons, vessels and aircraft as part of this pressure campaign.


The designations target both the maritime transport networks that move Iranian petroleum and petrochemical goods to global markets and the procurement chains that supply components and materials to Iran’s military-related programs. The Treasury described the actions as part of an intensified effort to disrupt those flows.

Risks

  • Continued use of covert maritime networks to move Iranian petroleum and petrochemical products, as evidenced by vessels operating since 2022-2025.
  • Procurement channels and intermediaries in multiple jurisdictions that appear to enable the acquisition of precursor chemicals and sensitive machinery for missile and advanced conventional weapons programs.
  • Uncertainty over the effective disruption of technical support flows, given reported travel by Qods Aviation Industries employees to Russia and Venezuela to provide UAV technical assistance.

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