The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned over a dozen entities and vessels involved in the shipment of Iranian crude oil and liquid petroleum gas (LPG) to Syria and East Asia. These actions aim to disrupt illicit trade that benefits the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Lebanese Hizballah.
OFAC targeted four vessels associated with Syrian shipping magnate Abdul Jalil Mallah and his brother, Luay al-Mallah. Since Abdul Jalil’s 2021 sanctioning for supporting IRGC-QF financial operations, his brother has continued their shipping empire’s role in advancing Iran’s destabilizing activities. The Mallah brothers’ involvement has helped finance IRGC-QF and Hizballah’s operations.
According to Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, “Iran continues to rely heavily on the illicit sale of oil and liquid petroleum gas by the IRGC-QF and Hizballah to fund its terrorist proxies and destabilizing activities.” Smith reaffirmed the U.S. Treasury’s commitment to disrupting these networks.
The action is taken under Executive Order (E.O.) 13224, which authorizes sanctions against those providing material support to terrorist groups. OFAC previously designated the IRGC-QF and Hizballah as terrorist entities, in 2007 and 2001 respectively.
Sanctioned Shipping Networks
Several shipping companies and vessels have been sanctioned for facilitating IRGC-QF shipments:
Star Ocean Shipmanage Ltd. – Based in the People’s Republic of China (PRC) and operating vessels such as ETERNAL SUCCESS, ETERNAL 8, and ETERNAL PEACE, this company helped transport Iranian oil to East Asia. These vessels used ship-to-ship transfers to evade detection, with ETERNAL SUCCESS continuing illicit activity as recently as July 2024.
Dragon Road Ltd. and Tai Feng Hai Shipping Limited – These Marshall Islands and Hong Kong-based entities owned vessels transporting IRGC-QF-owned products from Iran to East Asia. Vessels SERENE I and FENG TAI were involved in shipping oil for Hizballah-affiliated Lebanese companies.
The Mallah Family Shipping Network
Luay al-Mallah has managed the illicit operations of his family’s shipping business following his brother Abdul Jalil’s 2021 designation. Their fleet has facilitated trade between Syria and Iran, advancing IRGC-QF and Hizballah operations. Key vessels include CONFIDENCE P, NOVA, and TIYARA. Luay al-Mallah’s company, Türkiye-based Oryx Denizcilik Limited Sirketi, was also sanctioned.
Sanctions and Global Implications
As a result of these designations, all U.S.-based property and assets of the sanctioned individuals and entities are blocked. U.S. persons and entities are prohibited from conducting transactions with them, and non-U.S. persons who knowingly engage with the designated parties risk secondary sanctions.
The U.S. Treasury’s actions send a strong signal of continued pressure on Iran’s efforts to fund terrorism through illicit oil sales. The sanctions aim to isolate the networks that sustain IRGC-QF and Hizballah’s destabilizing activities across the Middle East and beyond.
Source » irannewsupdate