US sanctions tanker headed for demolition

Donald Trump’s so-called ‘maximum pressure’ campaign against Iran has stepped up a gear with the latest targeted sanctions announced in Washington DC yesterday including a ship waiting to be scrapped off Bangladesh as well as tug boats that have serviced Iranian-linked vessels in the past.

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) hit Iran’s Minister of Petroleum, Mohsen Paknejad, with sanctions yesterday as well as 10 more tankers and three tugs. 

Among the 10 tankers sanctioned, the one most likely to grab the headlines is the 1997-built Comoros-flagged Itaugua, a VLCC currently moored off Bangladesh awaiting demolition, something that is now unlikely to happen following Washington’s designation. 

The Seasky is also noteworthy in the latest American rulings for its flag. The LR2 is accused of transporting tens of thousands of metric tons of fuel oil on behalf of Iran to China. It flies the flag of San Marino, a shipping register founded in 2021. Landlocked San Marino’s growth will likely raise questions within European circles – its fleet growing by 663% last year to 1.1m gt.

Three Southeast Asian tugs who have aided Iran’s ship-to-ship transfers to get oil to China are also part of this third wave of sanctions handed out by the Trump administration in less than two months since the new government came to power. 

“The Iranian regime continues to use the proceeds from the nation’s vast oil resources to advance its narrow, alarming self-interests at the expense of the Iranian people,” said Secretary of the Treasury Scott Bessent. “Treasury will fight and disrupt any attempts by the regime to fund its destabilising activities and further its dangerous agenda.”

Iran exports are estimated to have declined to 1.35m barrels per day on average during January and February, as compared to their 2024 average of 1.70m barrels per day. There are increasing reports of volumes lifting from Iran but facing extended storage time in Southeast Asia as the pool of buyers and ships available has tightened.