Washington:

The United States has imposed fresh sanctions against companies and individuals based in India and Turkey over their alleged involvement in helping Iran evade oil-related restrictions. The US Treasury Department unveiled the new sanctions a day after Democrats made huge gains in midterm elections, winning control of both houses of Congress as voters expressed anger about the Iran war and its impact on fuelling US inflation.

The sanctions are part of the Trump administration’s “Operation Economic Outcast”, which aims to cut off Iran’s ability to sell oil to fund the war with the US and Israel. The United States warned that it would continue to go after anyone who supported the Iranian government.

Who Was Sanctioned

Among the sanctioned individuals are India-based Suniel Kumar Sharma and his wife, Jaspreet Preeti Shahid, and two other Indian citizens who head two of the couple’s businesses, as well as nine separate entities connected to Sharma, all of whom, according to the US Treasury Department, supported Iran’s shadow fleet through a web of maritime fraud.

“Their schemes have provided false flags and certifications to sanctioned vessels involved in transporting Iranian petroleum, including vessels operating on behalf of the Iranian military and its proxies,” the Treasury Department said in a statement.    

False flags and fake maritime certifications allow vessels engaging in illicit activity to evade international safety and environmental regulations, carrying no indemnity insurance. That means such vessels could potentially cause billions of dollars in damages to the economies of the countries in whose territorial waters they operate. 

The department also sanctioned Turkey-based Fugo Ground Services Inc for its ongoing support of Iran’s heavily sanctioned aviation sector.

Treasury Secretary Scott Bessent said the US government would continue to go after anyone who supported Tehran. “We know where you are, and we will sanction those who continue supporting the Iranian regime, whether by land, sea, or air,” he said in a statement.

“As we have said many times, under Operation Economic Outcast, you are either with us or against us. We know where you are, and we will sanction those who continue supporting the Iranian regime, whether by land, sea, or air,” he added in a post on X.

Reason For Sanctions

It said Sharma and Shahid, based in Chandigarh, had fraudulently claimed to represent countries like Guyana, Eswatini and Laos in issuing flags and certifications, allowing vessels operating on behalf of the Iranian military and its proxies to evade international restrictions and keep operating.

Sharma’s network bought web domains, creating websites that claimed to offer services on behalf of these countries and others, including flagging, seafarer training and certification, and vessel classification.

The couple also managed a network of India-based entities that were used to establish fraudulent flagging registries, and those firms were also designated for sanctions.

Fugo Ground Services, the Turkish company designated by OFAC, provided ground handling and other services to several US-sanctioned Iranian airlines that continued to fly to Turkey, including Iran Air Tour, Saha Airlines, Taban Airlines and Ata Airlines, Treasury said.

The move tightens the squeeze on Iranian oil ​sales after the US reimposed its blockade of Iranian ports on July 14 following the ​breakdown of a memorandum of understanding between Tehran and Washington to end the war.    

The Midterm Effect

US President Donald Trump has acknowledged the role the Iran war — and the resulting spike in gasoline prices — had played in the election losses but said the military conflict was worth it. Oil prices fell sharply in volatile trading as investors weighed a possible end to the war in Iran.

Brett Erickson, managing principal of Obsidian Risk Advisors, told news agency Reuters that the new sanctions sent a powerful message that the Trump administration was escalating its economic warfare against Iran, despite the bruising election results.

“Even after a brutal electoral defeat, Washington appears unwilling to take even the smallest step toward de-escalation,” he said.

Treasury last week said its actions were decimating Iran’s economy, driving the rial currency to new lows and sending domestic inflation rates to levels around 90 per cent.

Treasury’s Office of Foreign Assets Control also issued a new alert to the industry, warning of the sanctions risk of dealing with potentially false-flagged vessels.