US Sanctions Four Indian Companies in Latest Move Against Iran’s Oil Trade
February 25, 2025
12:37 PM
Reading time: 5 minutes

The U.S. Office of Foreign Assets Control (OFAC) has added four Indian companies to its latest list of entities sanctioned for their involvement in the international trade of Iranian crude oil. This action is part of a broader effort to target Iran’s "shadow fleet," which the country uses to illegally export oil across the globe.
The sanctioned companies—Austinship Management Pvt Ltd, BSM Marine LLP, Cosmos Lines Inc, and Flux Maritime LLP—are alleged to have played roles in facilitating the movement of Iranian crude oil. The U.S. sanctions sweep, which also targeted over 30 individuals and vessels, highlights the growing pressure the U.S. is placing on Iran to curb its oil exports, a key component of its economy.
The latest sanctions mark a continuation of President Trump’s maximum-pressure campaign on Iran, a strategy that has had significant consequences for global oil markets. Treasury Secretary Scott Bessent has made clear that the goal is to reduce Iranian oil exports to a fraction of their current levels, with sanctions targeting oil traders in Hong Kong, the UAE, and the head of Iran’s National Oil Company.
Oil prices surged following the announcement, as traders anticipate tighter global oil supplies due to the reduction in Iranian exports.
Strategic Impact on China and Global Trade
A crucial aspect of the sanctions is their potential impact on China, which is Iran's largest oil customer. With the U.S. signaling that any country purchasing oil from Iran will face economic sanctions and tariffs, the situation is poised to add further complexity to U.S.-China relations. President Trump has warned countries, including China, that continued engagement with Iran will result in punitive measures on goods and trade.
The sanctions are a part of Trump’s broader foreign policy strategy, aiming to isolate Iran economically. In a speech at the Republican National Convention last year, Trump promised to reduce Iranian oil exports by using trade leverage, including imposing tariffs on countries that continue to buy oil from Tehran.
The Shadow Fleet and Its Hazards
Iran has reportedly been using a "dark fleet" of aging tankers to circumvent sanctions and deliver oil to China. These vessels are often difficult to track, as they operate with their transponders turned off, and frequently lack proper insurance. The dangers associated with such practices were underscored earlier in 2024, when two tankers from this fleet caught fire after a collision off the coast of Singapore.
As the U.S. tightens its grip on Iran’s oil trade, experts believe the situation will drive up oil prices and increase global market volatility. “A Trump victory may see the United States enforce sanctions against Iran, thereby reducing Iranian oil exports and prompting oil prices higher,” said Vivek Dhar, a commodities strategist at the Commonwealth Bank of Australia.