Indian firm among global entities hit in fresh set of sanction by US over oil trade with Iran

The US Department of the Treasury has announced a new round of sanctions targeting Iran’s shadow oil network, naming companies and individuals across several countries, including an India-based shipping operator.

"Today, the Department of Treasury is designating 17 entities, individuals, and vessels to stem the flow of revenue that the Iranian regime uses to advance its nuclear program, and to target shipping facilitators in multiple jurisdictions who, through obfuscation and deception, load and transport Iranian oil for sale to buyers," the US Department of State said in a statement.

The department said the entities were being sanctioned because they were helping Iran generate funds for its nuclear programme.

According to the Treasury, these sales have become a key revenue source for Iran’s military as it attempts to rebuild following its defeat in the recent 12-Day War with Israel.

The statement added that all property and interests in property of the designated or blocked persons that are in the United States or in the possession or control of US persons are now blocked and must be reported to the Office of Foreign Assets Control (OFAC). Entities owned 50% or more, directly or indirectly, by one or more blocked persons are also automatically blocked.

Unless authorised by a general or specific OFAC licence or exempt under regulations, US persons are prohibited from conducting transactions involving the property or interests in property of any blocked person.

The department also noted that violations of US sanctions may result in civil or criminal penalties for both US and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict-liability basis, and its Economic Sanctions Enforcement Guidelines outline the enforcement process.

Financial institutions and other entities could also face exposure to sanctions if they engage in certain transactions with designated or otherwise blocked persons. Prohibitions include providing or receiving funds, goods or services to or from any sanctioned individual or entity.

Indian firm on list

As of early 2025, India-based RN Ship Management Private Limited (RN Ship Management), led by Indian nationals Zair Husain Iqbal Husain Sayed (Zair Husain) and Zulfikar Hussain Rizvi Sayed (Zulfikar Hussain), served as the operator of multiple vessels used by Sepehr Energy Jahan to ship Iranian oil. This included the sanctioned vessel SOBAR (IMO 9221970).

RN Ship Management Private Limited and Alsafeenah Althahabya Ship and Boats Spare Parts and Components Trading L.L.C. are being designated under E.O. 13224, as amended, for materially assisting, sponsoring, or providing financial, material, or technological support for, or goods or services to or in support of, Sepehr Energy Jahan.

Zair Husain Iqbal Husain Sayed and Zulfikar Hussain Rizvi Sayed are also being designated under the Executive Order for serving as leaders or officials of RN Ship Management Private Limited.