WASHINGTON — The U.S. government has imposed new sanctions on companies that smuggled Iranian crude oil by disguising it as Iraqi oil. This move is the latest in a series of sanctions against Iran, intended to curb the Iranian government's attempts to evade international restrictions and cut off its financial lifelines.

On September 2, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) announced it had designated a shipping company operated by Walid Al Samarraie, a dual Iraqi-St. Kitts and Nevis national, and its associated vessels for sanctions. As a result, any assets in the U.S. will be frozen, and all transactions with Americans are prohibited.

Smuggling Operation Exposed 

According to the Treasury Department, the sanctioned entities have been mixing Iranian oil with Iraqi oil and selling it as "Iraqi" crude. This operation has reportedly generated at least $300 million in annual revenue for Al Samarraie and the Iranian regime. The sanctions target Al Samarraie himself, two companies in the United Arab Emirates (UAE)—Babylon Navigation DMCC and Galaxy Oil FZ LLC—nine Liberian-flagged vessels, and five related shell companies.

This is not the first time the U.S. has acted on this issue. In July, the Treasury Department sanctioned 15 shipping companies across 17 countries, 52 vessels, and 12 individuals for their involvement in the trade of Iranian oil and goods. Last month, a Greek shipping company and two Chinese oil terminal operators were also added to the sanctions list.

U.S. Vows Continued Pressure 

Treasury Secretary Scott Besant stated, "Iraq must not become a safe haven for terrorists. This is why the United States is fighting Iran's influence in Iraq." He added, "The Treasury Department will target Iran's oil revenue streams to further weaken the Iranian regime’s ability to attack the United States and its allies."