Sunday Oct 12, 2025
Sunday Oct 12, 2025
Friday, 10 October 2025 04:46 - - {{hitsCtrl.values.hits}}
The US Department of the Treasury yesterday said it has imposed sanctions on a global network of companies, ships, and individuals facilitating Iranian petroleum and liquefied petroleum gas (LPG) exports, including shipments that reached Sri Lanka.
This is part of a broader crackdown on what Washington describes as Iran’s “shadow fleet.”
In a statement issued from Washington, the Treasury’s Office of Foreign Assets Control (OFAC) said it has sanctioned over 50 entities, individuals, and vessels connected to Iran’s energy export operations, targeting billions of dollars in trade that has generated critical revenue for Tehran’s regime.
According to the Treasury, two United Arab Emirates (UAE)-based firms, Markan White Trading Crude Oil Abroad Co. LLC and SLOGAL Energy DMCC, played key roles in enabling sales and shipments of Iranian LPG to Sri Lanka.
In late 2024 and early 2025, SLOGAL reportedly purchased Iranian LPG that was delivered by Panama-flagged and Palau-flagged vessels GAS DIOR and MAX STAR to Sri Lanka. These vessels, along with their operating companies, Aerilyn Shipping Inc. (Panama) and Ocean Inc. (Marshall Islands), have now been sanctioned.
The Treasury said multiple consignments of Iranian LPG were sent to end users in Sri Lanka and Bangladesh during this period. The shipments were coordinated by Iran-based Persian Gulf Petrochemical Industry Commercial Co. (PGPICC), one of Iran’s largest petrochemical brokers, through intermediaries in the UAE and Hong Kong.
The OFAC identified a wider web of entities across the UAE, Hong Kong, China, and the Marshall Islands for operating in the Iranian petroleum sector or assisting sanctioned firms.
“All property and interests in property of the designated persons that are in the United States or in the possession or control of US persons are blocked,” the OFAC said. The measures effectively bar US citizens and companies from conducting transactions with the listed entities and vessels.
The Treasury warned that any institutions or individuals engaging with sanctioned actors risk secondary sanctions, potentially exposing foreign banks or trading firms to US enforcement actions.
“The Treasury Department is degrading Iran’s cash flow by dismantling key elements of Iran’s energy export machine,” Treasury Secretary Scott Bessent said, adding that the sanctions are intended to curb Tehran’s ability to finance militant groups across the Middle East.
The latest measures represent the fourth round of sanctions targeting China-based refineries and intermediaries since mid-2024, marking an escalation of US efforts to curtail Iran’s petroleum revenue streams.
Sri Lanka, which imports most of its LPG requirements, has in recent years sourced cargoes through regional traders based in the Gulf and Asia.
Sri Lanka’s exposure to Iran is limited: According to the Export Development Board (EDB), total imports from Iran amounted to $ 2.48 million, which had fallen gradually from $ 9 million in 2021.
