Treasury Targets Oil Smuggling Network

The U.S. Treasury Department announced on Tuesday a crackdown on a complex network of shipping companies engaged in smuggling Iranian oil disguised as Iraqi. The network, led by an Iraqi-Kittitian businessman, alters and markets the oil to bypass U.S. sanctions against Iran.

This move is consistent with the administration's strategy to maintain pressure on Iran as nuclear negotiations remain stalled. A sixth round of talks was delayed following a brief conflict in June. Iranian officials indicated the door to talks is still open, although U.S. demands regarding missile restrictions pose significant hurdles.

According to Treasury Secretary Scott Bessent, the operation's aim is to degrade Iran's financial capabilities linked to oil. Several UAE-based companies, along with various vessels, were sanctioned for their involvement. Meanwhile, efforts to mask the businessman's ownership involve Marshall Islands-based companies allegedly serving as registered vessel owners.

(With inputs from agencies.)