President Trump's Limited Iran Oil Sanctions Fall Short of Promised 'Maximum Pressure'
Despite rhetoric signaling a "maximum pressure" campaign, President Donald Trump's initial sanctions package targeting Iranian oil carriers has failed to deliver the promised impact, industry analysts and shippers assert.
The recent measures, announced Thursday, impacted one very-large crude carrier and two Aframaxes alleged to facilitate Iranian oil shipments to China. Several entities and individuals involved in the trade, including the Armed Forces General Staff of Tehran and its sanctioned front company (Sepehr Energy Jahan Nama Pars), were also targeted.
Prior to Trump's inauguration, fears of crippling sanctions against Iran had escalated, given his vocal opposition to the Islamic Republic. However, recent statements by the former President suggest a softening of his stance, indicating a willingness to negotiate a new nuclear deal that promotes Iran's economic stability.
According to Junjie Ting, a shipping analyst at Oil Brokerage Ltd., the latest sanctions are comparable to those imposed by the Biden administration in recent years, which had minimal impact on Iran's oil exports. He deems them as "a warning shot."
The sanctioned vessels include the CH Billion, an Aframax flying under Panama's flag. In 2024, it reportedly received over 700,000 barrels of Iranian crude from a Tehran-owned tanker near Singapore, a hotspot for ship-to-ship transfers. The vessel has also been used to transport oil from Russia's Kozmino port, whose fleet was sanctioned last month.
Two other affected tankers are the Panama-flagged Gioiosa and the Hong Kong-flagged Star Forest. Additionally, the Comoros-flagged tanker Siri was included in the latest sanctions statement. According to the Treasury, the vessel has been operating under a false identity, with its Iranian owner altering documents and concealing its name to disguise it as a different tanker, New Prime.