Washington Imposes Sanctions on Iranian Oil Network to China

The United States enacts new financial sanctions against an international network moving Iranian oil to China, with generated revenues funding military activities, according to Washington, sparking debate over the economic impact of such measures.

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U.S. authorities have announced financial sanctions targeting a network accused of transporting significant quantities of Iranian oil to China. According to official reports, these deliveries generate several hundred million dollars in revenue for the Iranian military. U.S. officials assert that these funds contribute to military programs, including the development of ballistic missiles and drones. The U.S. Treasury Department specified that the objective is to restrict Iran’s access to resources deemed sensitive for international security.

Allegations of Support to Armed Groups

U.S. officials claim that this international network financially supports groups such as Hamas and Hezbollah, which are labeled as terrorist organizations by Washington. The sanctions also target Sepehr Energy, described as a shell company linked to the Iranian military. The identified tankers and affiliated shipping companies are now prohibited from using the U.S. financial system. This move, according to the U.S., seeks to strengthen the “maximum pressure” policy against Tehran.

The recent decision is part of a broader strategy aimed at curbing Iran’s nuclear program. U.S. officials consider that oil revenues also facilitate the development of weapons and the support of various regional military groups. The initiative is designed to prevent any dollar-based transactions related to these activities, thus hindering Tehran’s access to international financial networks. Sanctioned entities may find it increasingly difficult to maintain trade with foreign partners.

Potential Consequences on Trade

Under these sanctions, companies based in the U.S. or subject to U.S. laws face penalties if they engage with the sanctioned entities. This restriction extends to the use of the dollar in transactions, significantly complicating trade for the affected companies. Some analysts suggest that these measures could prompt market participants to shift their supply routes to avoid exposure to the sanctions. As of now, no official response has been issued by Iranian authorities.

The strict enforcement of these restrictions underscores the U.S. government’s determination to put pressure on the Iranian economy. Several observers note that Tehran’s military and technological activities remain a central concern for the international community. Diplomatic negotiations, when they occur, remain challenging due to differences over the nuclear program and Iran’s regional role. Freezing assets and prohibiting commercial relations are among the most used levers to exert economic pressure.

These sanctions highlight the U.S. commitment to closely monitor Iranian oil flows. Officials believe that limiting these flows reduces the resources available for military projects considered as threats. The impact on the Iranian economy will depend on the ability of the affected entities to find alternative channels. Market watchers remain alert to the evolution of these trades and potential retaliation from Tehran.

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