US Sanctions Shipping Entities Linked to Iran, Hezbollah

Washington has imposed a financial and activity blockade against over a dozen vessels and shipping firms that it accused of involvement in the export of oil and gas to East Asia and Syria on behalf of Iranian security forces and Tehran-backed Lebanese militants.

Four of the ships are associated with Syrian shipping mogul Abdul Jalil Mallah and his brother Luay al-Mallah, the Treasury’s Office of Foreign Assets Control (OFAC) said in a statement. Abdul Jalil had already been put on the sanctions list June 10, 2021, for his alleged support to the network of Houthi financial official Sa’id al-Jamal, who is backed by Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC QF).

Since then, “Luay al-Mallah has continued to use their shipping empire to support Iran’s malign activities and those of its proxies”, read the statement.

Bradley T. Smith, acting undersecretary of the Treasury for terrorism and financial intelligence, said, “Iran continues to rely heavily on the illicit sale of oil and liquid petroleum gas by the IRGC-QF and Lebanese Hizballah to fund its terrorist proxies and destabilizing activities”.

“Treasury remains committed to disrupting the networks of shippers, brokers, and buyers that facilitate these schemes”, Smith added.

OFAC declared the IRGC-QF a terrorist supporter on October 25, 2007. Lebanon’s Hezbollah was labeled a Specially Designated Global Terrorist group by the State Department on October 31, 2001.

The subjects of the latest enforcement action include the Panama-flagged Confidence P (IMO 9178044), Sao Tome and Principe-flagged Nova (IMO 9141259), Panama-flagged Rival (IMO 9117818) and Iran-flagged Tiyara (IMO 9231224), all owned by the Mallah family. “The Mallah family’s ships… have facilitated illicit trade between Syria and Iran for the benefit of the IRGC-QF and Hizballah”, said the statement on the OFAC website.

China-based Star Ocean Shipmanage Ltd. has three ships targeted in the latest action — Eternal 8, Eternal Peace and Eternal Success, all carrying the Panamanian flag. “The IRGC-QF used the Eternal Success to facilitate illicit trade as recently as July 2024, manipulating its Automatic Identification System to disguise its movements while sailing toward East Asia, where it transferred its cargo to another tanker via a ship-to-ship transfer”, OFAC said. “Similar to its sister ship, the Eternal 8 has also been involved in transferring shipments for the IRGC-QF”.

Another ship, Panama-flagged Serene I (IMO 9197832) of Marshall Islands-based Dragon Road Ltd., has “loaded IRGC-QF-owned products in Iran on behalf of the U.S.-sanctioned, Lebanese Hizballah-affiliated, Lebanon-based company Concepto Screen SAL Offshore”, OFAC said.

“Similarly, the Panama-flagged Feng Tai (IMO 9248473) transported IRGC-QF-owned products, loaded in Iran, to the PRC [People’s Republic of China] on behalf of Concepto Screen SAL Offshore”, OFAC said. Feng Tai is owned by Hong Kong-based Tai Feng Hai Shipping Ltd.

The vessels, their owners and other properties and interests in property held by these shipping companies in the U.S. or are in the control of U.S. persons have been blocked. “In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked”, OFAC said.

Transacting with these entities may also result in sanctions, according to OFAC.

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