On December 19, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control imposed sanctions on three shipping companies and three vessels that facilitated the trade of Iranian petroleum and petrochemicals. OFAC reported that the revenues generated from the trade of Iranian petroleum supports Iran’s nuclear program, ballistic missile program, and the financing of terrorist groups such as the Houthis, Hizballah, and Hamas. OFAC also designated Master Joint Co., Limited, a Hong Kong-based company that was allegedly used by U.S.-designated Iranian trader Triliance Petrochemical Company to coordinate the sale of Iranian petrochemicals in early 2024. Triliance was designated by OFAC in 2020 for providing material support to the National Iranian Oil Company, which is overseen by the Iran’s Ministry of Petroleum.
The designations were imposed pursuant to Executive Order 13902 that enables the Department of the Treasury, in consultation with the Secretary of State, to identify and impose sanctions on key sectors of Iran’s economy, including its petroleum and petrochemical sectors. As a result of these designations, all property and interests in property of the designated persons within the United States or within the possession or control of a U.S. person are blocked, and U.S. persons are generally prohibited from engaging in transactions involving a designated person. Entities owned 50 percent or more by one or more blocked persons are also blocked.
The Department of State concurrently took action against four entities allegedly involved in the illicit movement of Iranian petroleum pursuant to Executive Order 13846, for willingly engaging in the trade of Iranian petroleum and petroleum products. The Department also identified four vessels as property in which the newly-designated entities had an interest.