Washington slaps sweeping sanctions on UAE-based companies and foreign tankers accused of disguising Iranian oil as Iraqi crude in a bold scheme to evade sanctions.
The United States Treasury Department has unleashed a new wave of sanctions against an intricate oil-smuggling operation that allegedly funneled Iranian crude disguised as Iraqi oil into global markets. The scheme, officials warn, directly bankrolled Tehran’s terror network.
According to the Treasury, the network was masterminded by a dual citizen of Iraq and St. Kitts & Nevis, operating from the United Arab Emirates. At the heart of the plot was Babylon Navigation DMCC, one of two UAE-based companies under his control. The operation used a fleet of Liberia-flagged tankers—the Adena, Liliana, and Camilla—to conduct covert ship-to-ship transfers in the Arabian Gulf and Iraqi ports.
In addition, the US sanctioned a shadowy web of Marshall Islands-based firms—Tryfo Navigation, Keely Shiptrade Limited, Odiar Management S.A., Panarea Marine S.A., and Topsail Shipholding Inc.—which served as paper owners of the vessels, obscuring the smuggler’s true command.
Treasury Secretary Scott Bessent underscored the move’s intent:
“By targeting Iran’s oil revenue stream, Treasury will further degrade the regime’s ability to carry out attacks against the United States and its allies. We remain committed to an oil supply free from Iran and will continue disrupting Tehran’s evasion tactics.”
The crackdown marks another escalation in Washington’s maximum pressure campaign against Tehran. Just last month, OFAC blacklisted 18 individuals and entities tied to Iran’s financial, surveillance, and sanction-busting operations.
Meanwhile, nuclear talks remain paralyzed. Following June’s 12-day war, negotiations have stalled over US demands concerning Iran’s ballistic missile program. This week, Ali Larijani, Secretary of Iran’s Supreme National Security Council, admitted the door to diplomacy remains “open”—but only on Tehran’s terms.
Analysts say the latest sanctions strike at the jugular of Iran’s energy lifeline, threatening not only its oil revenues but also its ability to sustain regional proxy wars.
