‘Stem the Flow of Revenue’: U.S. Sanctions Illicit Traders of Iranian Oil

Latest Developments

• U.S. Targets Funding of Tehran’s Malign Activities: The State Department announced on April 30 that it had sanctioned seven entities trading in Iranian petroleum and petrochemical products. The penalties, it said, seek to “stem the flow of revenue” — amounting to “hundreds of million dollars” — that funds Iran’s nuclear program and support for terrorist proxies throughout the Middle East.
• UAE and Turkish Companies Fuel Iranian Trade: The sanctioned entities include five based in the United Arab Emirates (UAE), one based in Turkey, and one based in Iran. In one example, the UAE-based company Solvent Organics “exported over $300 million worth of shipments containing Iranian-origin petrochemical products to third party countries,” the State Department said. Similarly, the Turkey-based company Kimpas “imported over $15 million worth of shipments containing Iranian-origin petrochemical products.”
• Sanctions Seek to Intensify Maximum Pressure: The new sanctions come as part of President Donald Trump’s renewed “maximum pressure” campaign against the Islamic Republic. In February 2025, Trump issued a national security memorandum calling for a “robust and continual sanctions enforcement campaign” against Iran, with the ultimate goal of dismantling Tehran’s nuclear infrastructure. “The President is committed to driving Iran’s illicit oil and petrochemical exports — including exports to China — to zero under his maximum pressure campaign,” said Secretary of State Marco Rubio in an April 30 statement.

FDD Expert Response

“Maximum pressure means maximum pressure. By continuing to ratchet up the pressure against Iran’s energy exports, the administration is proving that it can walk and chew gum at the same time when dealing with the threat from the regime in Tehran. Given the increasing relevance of petrochemicals over crude oil to Tehran’s illicit revenue generation, targeting these networks is putting the squeeze on the Iranian economy and developing leverage at the negotiating table.” — Behnam Ben Taleblu, Iran Program Senior Director and Senior Fellow

“The new sanctions are a welcome step to increase economic pressure on Iran. If nuclear negotiations between Washington and Tehran are to succeed, the Trump administration must have robust leverage that forces the Islamic Republic to make a binary choice: either dismantle its nuclear program or face economic collapse. The United States should crystalize this choice by continuing to threaten military action as well if Iran’s intransigence persists.” — Tzvi Kahn, Research Fellow and Senior Editor

FDD Background and Analysis

“Maximum Pressure on Tehran Regime in Motion as Trump Builds Negotiating Leverage,” by Janatan Sayeh and Behnam Ben Taleblu

“Tehran’s Diplomatic Gambit Aims to Forestall Pressure While Advancing Nuclear Program,” by Janatan Sayeh and Behnam Ben Taleblu

“Why inflation haunts Iran,” by Saeed Ghasseminejad

“U.S. Sanctions Should Target Tehran’s Top Economic Operatives,” by Saeed Ghasseminejad