The US has decided to impose sanctions on eight entities engaged in Iranian petroleum and petrochemical trade and is identifying eight vessels as their blocked property, the State Department announced on Tuesday.
The State Department cited the reason for the sanctions as being part of US President Donald Trump's "maximum pressure campaign on Iran."
It added that the "Iranian regime continues to destabilize global security with its nuclear threat, ballistic missile program, and support for terrorist groups."
"Iran’s oil exports are enabled by a network of illicit shipping facilitators in multiple jurisdictions who, through obfuscation and deception, load and transport Iranian oil for sale to buyers in Asia," the Department of State explained.
The sanctions were, therefore, being done to "stem the flow of revenue the regime uses to fund these destabilizing activities," the State Department said.
Who will be affected by the sanctions?
The State Department listed some of the following entities that will be sanctioned for "knowingly engaging in a significant transaction for the sale or transport of petroleum or petroleum products from Iran."
Kangan Petro Refinery Company, Cosmos Lines Inc, Alkonost Maritime DMCC, Austinship Management Private Limited. Oceanend Shipping Ltd., IMS Ltd, and Octane Energy Group FZCO were on the list.
The State Department said the result of the sanctions will be "in accordance with E.O. 13846, all property and interests in property of the designated persons described above that are in the United States or in possession or control of US persons are blocked and must be reported to the Department of Treasury’s Office of Foreign Assets Control (OFAC)."
The State Department added that "additionally, all entities and individuals that have ownership, either directly or indirectly, 50 percent or more by one or more blocked persons are also blocked."
The prohibition will include contributing or providing the blocked people with funds, goods, or services.
"The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior," the State Department emphasized in its statement.