U.S. Sanctions Extensive Shipping Network in Largest Iran-Related Action Since 2018

Latest Developments

Massive Iran Sanctions: The Treasury Department’s Office of Foreign Assets Control (OFAC) and the State Department have designated over 50 individuals and entities, as well as more than 50 vessels, tied to a vast shipping network controlled by Mohammad Hossein Shamkhani. Shamkhani is the son of Ali Shamkhani, who is a top adviser to Iranian Supreme Leader Ayatollah Ali Khamenei. Treasury’s announcement alleged that Shamkhani “leverages corruption through his father’s political influence” to generate tens of billions of dollars in profit through the illicit transport of oil and petroleum products to buyers worldwide. “The Shamkhani family’s shipping empire highlights how the Iranian regime elites leverage their positions to accrue massive wealth and fund the regime’s dangerous behavior,” Treasury Secretary Scott Bessent said.
Laundering Money Through Front Companies: Shamkhani’s network comprises numerous ships, ship management companies, and other front companies that launder billions of dollars from the sale of Iranian and Russian oil and petroleum products, mostly to buyers from China. The money is then transferred through multiple layers of front businesses, with “no easily discernible connection” to the Shamkhani network, to obfuscate ties to Iran. One key participant in the network is Yves Leon Agnes Demasure, the former chief investment officer of the UAE-based hedge fund Ocean Leonid Investments, whose portfolio comprises funds from illicit oil and petroleum sales.
Iran’s Oil Shipments and Profits: Despite several rounds of U.S. sanctions against Iran and the costly 12-Day War with Israel in June, Iranian oil exports surged in the first half of 2025. Tehran exported nearly 1.7 million barrels per day in June, resulting in an estimated total revenue of $3.7 billion. The Islamic Republic maintained this high level of exports during its war with Israel by loading vessels one at a time at its major exporting facility, Kharg Island, and moving part of its 36-ship strong floating oil storage fleet directly offshore near China to minimize disruptions to buyers.

FDD Expert Response

“Designating Shamkhani is a welcome and overdue step by the United States following the actions taken by the United Kingdom and the European Union. But facts are stubborn things, and no amount of superlatives in a press release will change them. Here’s the reality: in February, Bessent vowed to slash Iran’s oil exports to 100,000 barrels per day. Since then, Iran has exported an average of 16 times that daily amount. Going after front companies alone won’t change that.” — Saeed Ghasseminejad, Senior Iran and Financial Economics Advisor

“Today’s action against Iran is the largest since 2018. Over 115 individuals and entities were targeted, but one designation is particularly notable — Zhoushan Jinrun Petroleum Transfer Co. This is the fourth China-based crude oil and petroleum products terminal to be sanctioned, presenting greater risk and sanctions exposure for Chinese financial institutions dealing in Iran’s illicit oil economy. While today’s development is significant and welcome, the action still falls short of targeting these firms. Ninety percent of Iran’s exported oil goes to China. It’s time we designate the banks involved.” — Max Meizlish, Senior Research Analyst

“These sanctions punish critical illicit networks with ties to the very top in Tehran. While the reach of the sanctions is astounding, President Trump can’t afford to take his eyes off the ball when it comes to their enforcement in China. ‘Maximum Pressure’ against Iranian oil exports under Trump should not look like the Biden administration’s failed doctrine of ‘Maximum Deference.’” — Behnam Ben Taleblu, Iran Program Senior Director and Senior Fellow