1. Home
2. Middle East
3. New U.S. Treasury Sanctions Target Iranian Shadow Fleet, Missile and Drone Supply Chains

The U.S. Treasury Department placed additional sanctions on Wednesday on the Iranian shadow fleet and networks linked to missile and drone production.

Listed on the sanctions includes 11 vessels involved in the trade and transit of Iranian petroleum. The goal of targeting these ships is to freeze the oil revenue from which the Iranian regime can benefit, which it may utilize in its nuclear and ballistic missiles programs as well as funding its proxy network.

Many of the targeted ships are based in countries such as the UAE and Panama, constituting a regional dimension to the sanctions.

The Treasury also singled out procurement and distribution networks spanning Iran, Turkey, and the UAE that are connected to the IRGC and the Iranian Military.

Corporations in Turkey including Utus, Arya, and Altis have received sanctions for serving as a financial front for the Iranian company Mado, which produces machinery utilized in Iran’s Shahed drone arsenal.

The MRPCG Trading corporation based in the UAE was mentioned for its procurement of sodium perchlorate for the Iranian regime, which is a component of ballistic missiles. 

Sanctions were also enacted against four individuals connected to Qods Aviation Industries, Mohammad Abedini, Mehdi Zand, Mehrdad Jafari, and Ebrahim Shariatzadeh, who have liaised with governments utilizing Iranian military hardware as providers of technical support.

Since January, the U.S. has released multiple sets of sanctions against Iranian individuals and entities, including against 14 vessels and 15 entities earlier in February following nuclear talks in Muscat, Oman, and against IRGC officials at the end of January.

As President Donald Trump once again highlighted the ballistic missiles and proxy network issues in Tuesday’s State of the Union speech despite talks with Iran focusing solely on the nuclear issue, this set of sanctions aligns with his administration’s updated policy rhetoric.

Another round of talks between U.S. and Iranian officials is slated to take place in Geneva on Thursday, and these new sanctions seek to put additional pressure on the Iranian regime as gaps on the nuclear issue remain.