The United States has taken action under President Trump’s maximum pressure campaign on Iran to stem the flow of revenue used by the regime to support its malign activities abroad and oppress its own people. The Department of State is imposing sanctions on four entities engaged in Iranian petroleum trade, identifying two vessels as blocked property, and designating three vessel management companies for their involvement in transporting Iranian petroleum.
Designation of Second China-Based Crude Oil Terminal
The Department of State has designated a second China-based crude oil and petroleum products storage terminal, Guangsha Zhoushan Energy Group Co., Ltd. (GUANGSHA ZHOUSHAN), pursuant to Executive Order 13846 for knowingly engaging in a significant transaction for the acquisition of crude oil from Iran. This terminal acquired Iranian crude oil at least nine times between 2021 and 2025, amounting to the import of at least 13 million barrels of Iranian crude oil.
GUANGSHA ZHOUSHAN is directly connected to a major refinery complex in China, demonstrating the role that China-based refiners continue to play in the purchase, acquisition, and processing of Iranian crude oil. This behavior enables Iran's ability to fund its nuclear escalations, support terrorist groups, and disrupt the flow of trade and freedom of navigation in waterways crucial to global prosperity and economic growth.
Designation of Vessel Management Companies
The Department of State has designated three vessel management companies: Rising Phoenix Provider NV (PHOENIX), Valiant Marine Ventures FZE (VALIANT), and Mariza Marine Co. Ltd. These companies are being designated pursuant to section 3(a)(ii) of E.O. 13846 for knowingly engaging in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran.
The companies involved have regularly conducted "dark activity," i.e., operating with their AIS location and identity beacon turned off, during their voyages. This behavior allows them to avoid detection by international authorities and circumvent sanctions imposed on Iranian shipping entities.
Sanctions Implications
As a result of today's sanctions-related actions, all property and interests in property of the designated persons described above that are in the United States or in possession or control of U.S. persons are blocked and must be reported to the Department of Treasury’s Office of Foreign Assets Control (OFAC). Additionally, all entities and individuals that have ownership, either directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.
All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.
The power and integrity of U.S. government sanctions derive not only from the U.S. government's ability to designate and add persons to the Specially Designated Nationals and Blocked Persons (SDN) List but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.