US expands sanctions on Iran’s ‘shadow oil economy’, warns global traders of risks

WASHINGTON: The United States on Thursday (local time) announced a fresh round of sanctions targeting Iran’s so-called “shadow oil economy”, accusing Tehran of illicit oil revenues to finance the Islamic Revolutionary Guard Corps (IRGC), regional proxy groups and military activities across West Asia.

In a statement, US Department of State spokesperson Tommy Pigott said the new measures are part of Washington’s “Economic Fury” campaign aimed at intensifying pressure on Iran.

“The US is targeting the Iranian regime’s dark fleet and illicit oil networks under Economic Fury,” Pigott said in a post on X. “Today’s sanctions cut off billions in revenue that funds the IRGC, proxy forces, and attacks on our partners. Any entity trading Iranian oil faces serious risk of US sanctions.”

The U.S. is targeting the Iranian regime’s dark fleet and illicit oil networks under Economic Fury. Today’s sanctions cut off billions in revenue that funds the IRGC, proxy forces, and attacks on our partners. Any entity trading Iranian oil faces serious risk of U.S. sanctions.

— Tommy Pigott (@statedeptspox) May 28, 2026

According to the US Department of State, the sanctions target entities, individuals and vessels allegedly involved in transporting Iranian petroleum, as well as networks accused of helping Tehran generate “billions of dollars” in oil revenue. “The United States is taking coordinated action to sever the Iranian regime’s access to the revenue streams that fuel its regional aggression and global terrorism,” the US State Department said in a press statement.

The department announced that it is sanctioning “numerous entities, individuals, and vessels that form the backbone of Iran’s illicit oil economy,” directly targeting ” the financial lifelines of the Islamic Revolutionary Guard Corps (IRGC) and Iran’s military apparatus.”

As part of the action, the State Department said it is designating eight entities and identifying eight vessels as “blocked property” for transporting Iranian petroleum or petrochemical products. It also sanctioned three entities and one individual allegedly linked to trade in Iranian-origin petrochemicals.

Simultaneously, the US Department of the Treasury imposed sanctions on a “Hong Kong-based” oil sales network accused of moving “tens of millions of barrels of Iranian oil worth billions of dollars”. “These Hong Kong-based entities have facilitated the storage, transport, and sale of this oil, directly funding the IRGC, Iran’s Armed Forces General Staff, and its military apparatus,” the statement said.

The State Department described the network as “a critical node in Iran’s ability to generate revenue for destabilising activities across the Middle East.” Warning companies and traders worldwide, Washington said it “will not hesitate to take action against anyone, anywhere, funding the Iranian government’s ability to attack its neighbors and its own people.”

“Any entity cooperating with Iran’s illicit oil trade or trading Iranian energy products faces the risk of exposure to US sanctions,” the statement added.

The announcement also highlighted efforts by the Rewards for Justice (RFJ) program, which is offering up to USD15 million for information that could help disrupt the financial operations of the IRGC and its branches, including the IRGC-Qods Force (IRGC-QF).

According to the RFJ program, the IRGC “has financed numerous terrorist attacks and activities globally,” while the IRGC-QF oversees Iran’s overseas operations through proxy groups “such as Hamas, Hizballah, and Iran-backed militia groups in Iraq.”

The State Department said it is seeking information related to “IRGC illicit financial schemes, including oil-for-money,” front companies operating internationally on behalf of the IRGC, sanctions evasion mechanisms, and financial institutions allegedly facilitating IRGC transactions.

The sanctions were imposed under Executive Orders 13224 and 13846, which the US government says are aimed at targeting terrorist groups, their supporters, and Iran-related sanctions violations. The latest measures form part of Washington’s broader “maximum economic pressure” campaign against Tehran under National Security Presidential Memorandum 2 (NSPM-2). (ANI)