In a significant escalation of its "maximum pressure" campaign against Iran, the U.S. imposed sanctions on four Indian companies, accusing them of facilitating the illicit trade of Iranian petroleum and petrochemical products. The move, announced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), targets a network of 16 entities worldwide, including Austinship Management Private Ltd, BSM Marine Ltd, Cosmos Lines, and Flux Maritime LLP from India, for their alleged role in transporting and marketing Iranian oil in defiance of international sanctions.
The sanctions come amid heightened tensions following Iran’s ballistic missile attack on Israel on October 1, 2024, and its subsequent nuclear escalations, prompting the Trump administration to intensify efforts to choke off Tehran’s oil revenue, a lifeline for its economy and military programs. The U.S. Treasury claims these Indian firms were part of a "shadowy network" that enabled Iran to bypass sanctions by shipping oil to buyers in Asia, bolstering Tehran’s ability to fund destabilising activities, including its nuclear ambitions, ballistic missile development, and support for regional terrorist proxies.
According to the Treasury, Mumbai-based Austinship Management Private Limited is linked to the Eswatini-flagged vessel Amak, which conducted ship-to-ship transfers of Iranian oil. BSM Marine Limited Liability Partnership, also based in India, is tied to the Gabon-flagged Yateeka, accused of similar activities. Flux Maritime LLP allegedly facilitated Iranian oil shipments through covert transfers, while Cosmos Lines is implicated in the broader logistics of moving Iranian petroleum products. Alongside these companies, the U.S. sanctioned 12 vessels, including Amak and Yateeka, as blocked property, freezing any U.S.-based assets and prohibiting American entities from engaging with them.
“Iran continues to rely on a shadowy network of vessels, shippers, and brokers to facilitate its oil sales and fund its destabilising activities,” said Treasury Secretary Scott Bessent in a statement. “The United States will use all our available tools to target every aspect of Iran’s oil supply chain. Anyone who deals in Iranian oil exposes themselves to significant sanctions risk.” The Treasury alleges that these firms played a “critical role” in transferring Iranian oil, with destinations including China and other Asian markets, circumventing both U.S. and U.N. restrictions.
This marks the latest in a series of U.S. actions targeting Indian entities involved in Iran’s oil trade. In October 2024, Gabbaro Ship Services Pvt Ltd faced sanctions for managing the tanker Hornet, part of Iran’s so-called “Ghost Fleet”. In December 2024, Vision Ship Management LLP and Tightship Shipping Management (OPC) Private Limited were hit for operating ships that transported millions of barrels of Iranian crude. Today’s sanctions, bring the total to at least seven Indian firms penalised since late 2024, signaling Washington’s growing scrutiny of India’s role in Iran’s oil ecosystem.
India, historically a major buyer of Iranian oil until U.S. sanctions halted imports in 2019, has maintained a delicate balance in its energy trade. While New Delhi officially complies with U.S. sanctions, the involvement of private Indian firms in Iran’s illicit oil network has drawn Washington’s ire. The Ministry of External Affairs has yet to respond to the latest sanctions, but posts on X indicate a mix of defiance and concern among Indian observers, with some questioning the extraterritorial reach of U.S. policy and others urging stronger domestic oversight of shipping firms.
The economic impact on the sanctioned companies is immediate: their U.S. assets are frozen, and non-U.S. entities risk secondary sanctions for dealing with them. For India, this could complicate its shipping sector, already navigating global trade pressures under Trump’s tariff threats. Analysts suggest these measures may strain U.S.-India relations, especially as New Delhi seeks to bolster energy security amid volatile oil markets.
Iran, meanwhile, has dismissed U.S. sanctions as “illegal” and vowed to continue its oil exports. The National Iranian Oil Company (NIOC), a frequent target of U.S. designations, remains a key player in these illicit networks, often relying on intermediaries like the sanctioned Indian firms to obscure the origin of shipments.
The U.S. vows to sustain its crackdown, with Bessent hinting at further actions to dismantle Iran’s oil supply chain. For the Indian companies, small players in a high-stakes game, the sanctions mark a costly entanglement in a geopolitical tussle far beyond their shores, leaving their operations and reputations in limbo.
Pic credit AP/PTI.