The United States has decided to increase sanctions on Iran’s oil sector. This decision came after ‌Iran’s missile attacks on Israel. On October 1, Iran targeted Israel. Iran attacked ‌Israel in 2nd times within 6 months. According to Antony Blinken, these actions have certain objectives. They have aimed to stop Iran from getting money for its nuclear program, missile development, and support for terrorist groups in the Middle East.

The main target of the US is Iran’s “ghost fleet.” It consists of companies and ships that illegally transport oil. They sanctioned 6 companies in this effort and also blocked 6 ships. 

The Treasury Department also sanctioned ten more companies and identified 17 additional ships involved in transporting oil for these groups. New rules are now permitting the United States to impose on any nation that supports Iran’s oil imports and exports. This strong approach aimed to limit Iran’s influence and decrease threats to peace in the region.

With these sanctions, the United States limits Iran’s financial resources. Furthermore, this decision by the United States is the biggest hurdle on the nation’s path to earning revenue from energy exports. This cutting of resources also weakens Iran’s ability to fund activities that destabilize the region and threaten its allies, such as Israel.

To target Iran’s trade in these sectors, the United States Treasury, working closely with the Secretary of State, is using the authority of Executive Order 13902. This order permits the US government to impose sanctions on single persons or communities involved in the oil and petrochemical industries. 

The broader goal is to block funds that Iran could use to support its nuclear program, missile development, or terrorism. Ultimately, this approach seeks to reduce Iran’s influence, disrupt its operations, and promote greater regional stability.

The Office of Foreign Assets Control (OFAC) is taking action against all companies and ships that are involved in moving Iranian oil and chemical products. It includes 10 companies and 17 ships. This is part of Executive Order 13846. It has an aim to stop the National Iranian Oil Company (NIOC) and Triliance Petrochemical Co. Limited (Triliance) from operating. The US Department of State also announced the names of 6 more companies and ships. These companies are also involved in making important deals with Iranian oil products. 

In this way, the US has successfully disrupted the networks of ships and people that support the Iranian government to sell oil. NIOC was already targeted because it supports Iran’s military forces.   

Triliance was also sanctioned for helping sell oil from NIOC. These steps show the U.S. effort to limit Iran’s oil exports and the companies that help with these deals.

After Iran attacked Israel, the US struggled hard and made efforts to control the nation’s finances utilized in harmful activities. They aim to undermine ‌Iran’s ability to attack ‌Israel. Treasury Secretary Janet L. Yellen made an announcement about the new sanctions. The aim of these sanctions is to target Iran’s efforts to use funds from its energy sector. The money supports dangerous initiatives. These include developing nuclear weapons, creating ballistic missiles, and aiding terrorist groups. These actions threaten both regional and global security.

The sanctions are part of the Stop Harboring Iranian Petroleum (SHIP) Act, included in the Emergency Supplemental Appropriations for the 2024 Fiscal Year. This law stops foreign companies engaged in trading Iranian oil. It permits the United States government to enforce these penalties. With the implementation of these measures, the US wants to hold Iran accountable for its illegal actions and deter future threats from the Iranian regime.