Iranian oil smuggling operations and covert maritime vessels, known as the 'shadow fleet,' face sanctions by the United States
The United States has taken a significant step in its ongoing efforts to disrupt Iran's oil trade networks, announcing new sanctions against a large-scale Iranian oil smuggling network in early July 2025. The sanctions, announced by the U.S. Treasury Department and the State Department, target individuals, companies, and vessels involved in disguising Iranian oil as Iraqi oil to evade international sanctions.
At the heart of the sanctions is **Salim Ahmed Said**, an Iraqi-British businessman who is alleged to operate a network of companies that have been selling Iranian oil as Iraqi oil since at least 2020. Said's companies use tactics such as ship-to-ship transfers and forged documentation to blend Iranian oil with Iraqi oil and sell it on legitimate markets in the West, via Iraq or the UAE, thereby circumventing international sanctions.
Another key entity targeted by the sanctions is **Trans Arctic Global Marine Services PTE. LTD.**, a Singapore-based company that has been providing pilotage services enabling covert ship-to-ship transfers for Iranian tankers passing through strategic maritime chokepoints like the Strait of Malacca. This facilitation is part of Iran’s “shadow fleet” operations designed to obfuscate oil shipments.
Other entities, including UAE-based VS Tankers, the VS Oil Terminal in Iraq, and multiple tankers (such as Dijilah, Vizuri, Fotis, Themis, Bianca Joysel, Elizabet, Atila, and Gas Maryam) and their owning companies, were also sanctioned for their involvement in this smuggling network.
These actions are part of the eighth round of sanctions targeting Iran’s petroleum and petrochemical sectors under executive orders including E.O. 13902 and E.O. 13224, aiming to disrupt revenue flows to Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), a U.S.-designated Foreign Terrorist Organization.
The sanctions signal intensified U.S. efforts to pressure Iran by disrupting its illicit oil trade networks, cutting off billions of dollars in revenue that fuel Tehran’s destabilizing activities in the region. The sanctioned oil is then shipped to buyers in Asia.
Treasury officials allege that Said bribed many Iraqi government bodies, including its parliament, with millions of dollars in kickbacks. The sanctions are part of an effort to limit Iran's "access to the financial resources that fuel its destabilizing activities."
These enforcement measures include asset freezes and prohibitions on U.S. persons engaging with these entities, aiming to choke off critical financial resources benefiting Iran’s regime and proxy forces. The sanctions come after the Trump administration launched airstrikes on key nuclear sites across Iran. The U.S. continues to impose sanctions on entities and vessels involved in Iranian oil transactions.
[1] U.S. Treasury Department Press Release, "Treasury Sanctions Iranian Oil Smuggling Network," July 2025. [2] U.S. State Department Press Release, "State Department Imposes Sanctions on Entities and Vessels Involved in Iranian Oil Transactions," July 2025. [3] U.S. Senate Committee on Foreign Relations, "U.S. Sanctions on Iran's Oil Smuggling Network," July 2025. [4] Financial Times, "U.S. Sanctions Iraqi-British Businessman Over Iranian Oil Smuggling," July 2025. [5] Reuters, "U.S. Sanctions Iranian Oil Smuggling Network," July 2025.
Salim Ahmed Said, an Iraqi-British businessman, is alleged to use his network of companies to sell Iranian oil as Iraqi oil since at least 2020, evading international sanctions through tactics such as ship-to-ship transfers and forged documentation, with the goal of selling this oil on legitimate markets in the West. Trans Arctic Global Marine Services PTE. LTD., a Singapore-based company, is targeted for providing pilotage services enabling covert ship-to-ship transfers for Iranian tankers in strategic maritime chokepoints, aiding Iran's "shadow fleet" operations designed to obfuscate oil shipments.
