US hits Iranian shipping network with major new sanctions

The U.S. Treasury Department announced fresh sanctions on Wednesday on over 115 Iran-linked individuals, entities and vessels, in a sign the Trump administration is doubling down on its "maximum pressure" campaign after bombing Tehran's key nuclear sites in June.

The sanctions broadly target the shipping interests of Mohammad Hossein Shamkhani, the son of Ali Shamkhani, who is himself an adviser to Supreme Leader Ayatollah Ali Khamenei. The U.S. Treasury described the move as the most significant Iran-related sanctions action since 2018, during President Donald Trump's first administration.

According to Treasury, Shamkhani controls a vast network of container ships and tankers through a complex web of intermediaries that sell Iranian and Russian oil and other goods throughout the world.

Treasury accused Shamkhani of using personal connections and corruption in Tehran to generate tens of billions of dollars in profits, much of which is used to prop up the Iranian regime.

Overall, the new sanctions target 15 shipping firms, 52 vessels, 12 individuals and 53 entities involved in sanctions evasion in 17 countries, ranging from Panama to Italy to Hong Kong.

A U.S. official said the new move would make it "much more difficult" for Iran to sell its oil, but added that the administration did not anticipate any sustained disruption to global oil markets.

The official said that Iran's oil exports had already declined to around 1.2 million barrels per day, from 1.8 million bpd at the start of the year, after the administration imposed several smaller rounds of sanctions targeting Iran's oil business.

"We're still engaging further action to bring that number down even more," the official said, noting that sanctions pressure during Trump's first term had cut Iran oil flows to a few hundred thousand bpd.

Iran's UN mission did not immediately respond to a request for comment.

China is the top buyer of Iran's oil.

The European Union sanctioned Shamkhani earlier in July, citing his role in the Russian oil trade.

A U.S. official said that Wednesday's action would impact both Russia and Iran, but the action was focused on Iran.

"From our perspective, given where this individual fits, given his connection to the Supreme Leader and his father's previous sanctions activities, given the Iran-related authorities, it's critically important to emphasize that this is an Iran action that is meaningful and very impactful," the official said.

Ali Shamkhani, Mohammad Hossein Shamkhani's father, was sanctioned by the United States in 2020.

The latest sanctions announcement came as prospects for renewed U.S.-Iran diplomacy remained dim in the aftermath of the U.S. bombing of Iranian nuclear sites last month.

Trump warned on Monday that he would order fresh U.S. attacks should Tehran try to restart the nuclear sites the U.S. had already struck.

He also told reporters Iran has been sending out "nasty signals" and that any effort to restart its nuclear program would be immediately quashed.

The United States held five rounds of talks with Iran prior to its airstrikes in June, which Trump said had "obliterated" a program that Washington and its ally Israel say is aimed at developing a nuclear bomb.

Some experts have questioned the extent of the damage. Iran denies seeking a nuclear weapon.

A senior White House official said last week that Washington was open to talking directly to Iran. But European and Iranian diplomats have said there is little prospect of Iran re-engaging with the U.S. at the negotiating table for now.