U.S. Treasury Secretary Scott Bessent. Yonhap News. 

The U.S. government on Tuesday (local time) imposed sanctions on a company that smuggled Iranian oil by misrepresenting it as Iraqi oil.

The U.S. has been announcing a series of sanctions related to Iranian oil exports recently, which is interpreted as a measure to curb the Iranian government's strategy of evading international sanctions and to tighten its financial grip.

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) announced on the same day that it would impose sanctions, including asset freezes in the U.S. and prohibition of transactions in the U.S., on shipping companies and related vessels led by businessman Walid Al Samraie, who holds dual citizenship in Iraq and St. Kitts and Nevis.

These companies had been mixing Iranian oil with Iraqi oil and selling it as Iraqi oil to avoid sanctions. The Treasury Department stated that through this method, the Iranian regime and Al Samraie generated annual revenues of at least $300 million.

The sanctions target Al Samraie personally, two companies based in the United Arab Emirates (UAE) – Babylon Navigation DMCC and Galaxy Oil FZ LLC – nine Liberian-flagged vessels, and five related shell companies.

In July, the Treasury Department had previously imposed sanctions on 15 shipping companies, 52 vessels, and 12 individuals from 17 countries involved in the sale of Iranian oil and other commodities.

Last month, sanctions were imposed on a Greek shipping company and two Chinese crude oil terminal companies for their involvement in Iran's oil exports.

Treasury Secretary Scott Bessent said on the day, "Iraq should not be a safe haven for terrorists. This is why the United States is fighting against Iran's influence in Iraq. The Treasury Department will further weaken the Iranian regime's ability to attack the United States and its allies by targeting Iran's oil revenue sources."

He added, "We will continue our efforts to block Tehran's (Iran's) persistent attempts to circumvent U.S. sanctions."

The U.S. Department of State also stated in a separate release, "The United States will continue to take measures to impose maximum pressure on the Iranian regime and cut off the revenue sources that fund its destabilizing activities."

Yonhap News