U.S. Sanctions Indian Firms Shipping Iranian Oil

Irina Slav

The U.S. Office of Foreign Assets Control has added four Indian companies to its latest list of entities sanctioned for their involvement in the international trade of Iranian crude oil.

The companies are Austinship Management Pvt Ltd, BSM Marine LLP, Cosmos Lines Inc, and Flux Maritime LLP. The designation of the four entities was part of the latest sanction sweep against Iran’s so-called shadow fleet that the country uses to sell its oil abroad.

In that latest sweep, the U.S. sanctioned more than 30 individuals and vessels for their involvement with Iranian oil, including oil traders in the United Arab Emirates and Hong Kong, as well as the head of Iran’s National Oil Company.

The move marks Trump’s return to a maximum-pressure approach to Iran, which has turned into one of the few bullish factors for oil prices out there. U.S. Treasury Secretary Scott Bessent said earlier this month the target is to squeeze Iranian oil exports to a tenth of their current levels. Indeed, following the news of the latest sanctions on Monday, prices jumped as traders braced up for tighter supply from OPEC’s third-largest producer.

“In the short term, I continue to think crude oil is looking for a base. The fresh U.S. sanctions announced on Iran overnight will likely assist with this as will the Iraqi oil minister’s commitment to reign in its oversupply,” IG analyst Tony Sycamore told Reuters.

Iran sells almost all of its oil to China, which means that Trump’s Iran policies are going to be closely linked to his policies towards China. According to Standard Chartered, Trump’s Iranian policy will play a part in his dealings with China, after the President said that “I told China and other countries, if you buy from Iran, we will not let you do any business in this country and we will put tariffs on every product you do send in of 100% or more.”

By Irina Slav for Oilprice.com

source : oilprice