The U.S. is making a decision that is about to place Iran in a very uncomfortable situation and position. While some are in boardrooms, through emails, or in person, some of the first indications of rising global tensions are found at ports, cargo holds, and shipping routes that are essential to international trade rather than on battlefields. Oil and goods travel all over the world, but so do hidden networks and influence that cause concern among superpowers. The U.S. has made the decision to draw a clear line once more in a recent development.
With the largest sanctions against Iran since 2018, the Trump administration is increasing pressure
The U.S. Treasury Department announced fresh sanctions on Wednesday on over 115 Iran-linked individuals, entities and vessels, in a sign the Trump administration is doubling down on its “maximum pressure” campaign after bombing Tehran’s key nuclear sites in June. The sanctions broadly target the shipping interests of Mohammad Hossein Shamkhani, the son of Ali Shamkhani, who is himself an adviser to Supreme Leader Ayatollah Ali Khamenei.
The U.S. Treasury said it was the most significant Iran-related sanctions action since 2018, during President Donald Trump’s first administration. According to Treasury, Shamkhani controls a vast network of container ships and tankers through a complex web of intermediaries that sell Iranian and Russian oil and other goods throughout the world.
U.S. sanctions attack the world shipping web and suffocate Iran’s oil lifeblood
The Treasury accused Shamkhani of using personal connections and corruption in Tehran to generate tens of billions of dollars in profits, much of which is used to prop up the Iranian regime. Overall, the new sanctions target 15 shipping firms, 52 vessels, 12 individuals and 53 entities involved in sanctions evasion in 17 countries, ranging from Panama to Italy to Hong Kong.
A U.S. official said the new sanctions would make it “much more difficult” for Iran to sell its oil, but added that the administration did not anticipate any sustained disruption to global oil markets LCOc1. The official said that Iran’s oil exports had already declined to around 1.2 million barrels per day, from 1.8 million barrels per day at the start of the year.
This was after the Trump administration imposed several smaller rounds of sanctions targeting Iran’s oil business. The official said, noting that sanctions pressure during Trump’s first term had cut Iran’s oil flows to a few hundred thousand barrels per day.
“We’re still engaging further action to bring that number down even more.”
Responses and impacts on international trade
Iran has strongly rejected the accusations, claiming that the actions are politically driven and unfair. The authorities of the nation contend that such measures only serve to heighten tensions and hurt common people who depend on trade to maintain their daily living. They feel like the U.S. is taking advantage of the power it has on a global scale. Right now, we have the EU being ridiculed for spending an “unrealistic” amount of money on energy.
An Iranian foreign ministry spokesperson called the sanctions
“A clear example of America’s hostility towards the Iranian nation.”
The U.S. held five rounds of talks with Iran before its airstrikes in June, which Trump said had “obliterated” a program that Washington and its ally Israel say is aimed at developing a nuclear bomb. Some experts have questioned the extent of the damage. Washington is open to talking directly to Iran. But EU and Iranian diplomats have said there is little prospect of Iran re-engaging with the U.S. at the negotiating table for now. But with another nation, they are planning something positive, as U.S. companies are set to draft a Syrian energy master plan following the sanctions lift.