The United States continues to take action to disrupt Iran’s illicit oil trade - the primary revenue stream for the Iranian regime to fund terrorism and regional destabilization.
Most recently, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated three Iranian foreign currency exchange houses and their associated front companies as part of Operation Economic Fury.
Collectively, Iranian exchange houses facilitate billions of dollars in foreign currency transactions each year. Because Iran primarily settles its oil sales in Chinese yuan, these exchange houses play a critical role in converting oil revenues into currencies that are more readily useable by the Iranian military, its partners, and proxies.
“Iran is the head of the snake for global terrorism, and under President [Donald] Trump’s leadership, Treasury is moving aggressively, through Economic Fury, to sever the Iranian military’s financial lifelines,” said Secretary of the Treasury Scott Bessent. “We will relentlessly target the regime’s ability to generate, move, and repatriate funds, and pursue anyone enabling Tehran’s attempts to evade sanctions.”
At the same time, the State Department sanctioned several entities, an individual, and a vessel involved in the trade of Iranian petroleum, petroleum products, and petrochemical products. This action targeted Qingdao Haiye Oil Terminal Company, Limited, a China-based petroleum terminal operator that has imported tens of millions of barrels of sanctioned Iranian crude oil since the announcement of National Security Presidential Memorandum 2, which focuses on imposing maximum pressure on Iran to curb its nuclear threat and support for terrorism. Haiye has enabled the flow of billions of dollars to Tehran that has relied on sophisticated evasion schemes, accepting cargo from vessels conducting illicit ship-to-ship transfers with sanctioned vessels. These vessels also conducted deceptive shipping practices that endangered legitimate maritime commerce.
Such measures disrupt Iran’s ability to fund terrorism and proxies, develop weapons, and threaten the region. The United States remains focused on ensuring the Iranian regime cannot use illicit oil revenues to advance its destructive agenda while the Iranian people continue to suffer from economic mismanagement and repression.
The Trump Administration will continue to hold Iran accountable and counter its dangerous and malign behavior. As part of Economic Fury, the U.S. will intensify economic pressure on Iran and the international network that sustains its illicit energy trade.