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The U.S. Treasury Department imposed new sanctions Thursday targeting a network accused of smuggling Iranian oil disguised as Iraqi oil, and a Hezbollah-linked financial institution. The network, operated by Iraqi-British national Salim Ahmed Said, has allegedly trafficked billions of dollars in Iranian oil since 2020, blending it with Iraqi crude and selling it to Western buyers through falsified documents.
According to the Treasury, the operation used UAE-based VS Tankers—formerly Al-Iraqia Shipping Services & Oil Trading (AISSOT)—to facilitate these covert shipments. Although Said controls VS Tankers, he avoids formal ties. The smuggled oil financially benefits the Iranian government and the Islamic Revolutionary Guard Corps (IRGC), designated by the U.S. as a terrorist group. VS Tankers has denied the allegations and plans legal action.
The sanctions also target several vessels involved in these operations, further pressuring Iran’s “shadow fleet” that helps circumvent international restrictions. These sanctions freeze any U.S.-based assets of the entities involved and prohibit American companies and individuals from doing business with them.
Separately, the Treasury sanctioned senior officials and an entity linked to Al-Qard Al-Hassan, a Hezbollah-controlled bank. The officials reportedly managed millions of dollars in transactions that obscured Hezbollah’s financial activity.
Treasury Secretary Scott Bessent stated, “We will continue to disrupt Tehran’s revenue streams and impose economic pressure to limit access to funding for its destabilizing actions.”
These developments follow U.S. military strikes on Iranian nuclear facilities, including the deeply buried Fordow site, which the Pentagon claims could delay Iran’s nuclear program by up to two years. Talks between the U.S. and Iran over the nuclear issue are expected next week in Oslo.
The latest actions underline Washington’s commitment to curbing Iran’s influence through economic and diplomatic pressure.
