Waiting for U.S. President Donald Trump’s go-ahead for new sanctions against Russia and its major oil customers, due in early August, Washington’s army of sanctioneers was busy in late July rolling out new sanctions measures against malicious actors in the Middle East, mostly against Iran-linked oil and shipping companies and drone producers but also against certain Palestinian organizations.
Iran remains target number one
On July 30, in its largest Iran-related action since 2018, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated more than 50 individuals and entities and identified more than 50 vessels that are part of the shipping empire controlled by Mohammad Hossein Shamkhani (Hossein).
Hossein — the son of Ali Shamkhani, a top political advisor to the Supreme Leader of Iran — is said to leverage corruption through his father’s political influence at the highest levels of the Iranian regime to build and operate a massive fleet of tankers and container ships. This network is known to transport oil and petroleum products from Iran and Russia, as well as other cargo, to buyers around the world, generating tens of billions of dollars in profit.
“The Shamkhani family’s shipping empire highlights how the Iranian regime elites leverage their positions to accrue massive wealth and fund the regime’s dangerous behavior,” said Secretary of the Treasury Scott Bessent on July 30. He expanded “The over 115 sanctions issued today are the largest to-date since the Trump Administration implemented our campaign of maximum pressure on Iran. These actions put America first by targeting regime elites that profit while Tehran threatens the safety of the United States.”
According to OFAC, Hossein’s network exerts control over a significant portion of Iran’s crude oil exports, the proceeds of which substantially benefit his family and the Iranian regime. His father, Ali Shamkhani was previously sanctioned by the U.S. in 2020. The Shamkhani family further exploits their ill-gotten wealth to obtain access to benefits unavailable to everyday Iranians, including owning exclusive properties around the world and obtaining foreign passports in exchange for substantial financial investments. These passports allow them to travel undetected and hide their connections to Iran when conducting business overseas in furtherance of their corrupt schemes.
Concurrently, the U.S. Department of State designated twenty entities and identified ten vessels as blocked property, pursuant to E.O. 13846 and E.O. 13902, for their involvement in the trade and transport of Iranian petroleum and petrochemical products.
The State Department designated a China-based operator of a crude oil and petroleum products terminal that has repeatedly accepted Iranian-origin crude oil, including from U.S.-designated tankers. Additionally, multiple companies in India, the United Arab Emirates, Turkey, and Indonesia were designated for their significant sales and purchases of Iranian-origin petrochemical products. President Trump has previously noted that any country or person who chooses to purchase Iranian oil or petrochemicals exposes themselves to the risk of U.S. sanctions and will not be allowed to conduct business with the United States.
Iran’s drone supply chain sanctioned
On July 31, OFAC designated five entities and one individual based in Iran, Hong Kong, Taiwan, and China for their procurement of technology in support of OFAC-designated Iran Aircraft Manufacturing Industrial Company (HESA). HESA is a state-owned subsidiary of Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) that manufactures Iran’s military aircraft and Ababil‑series unmanned aerial vehicles (UAVs), which have been employed by the Islamic Revolutionary Guard Corps (IRGC). “Iran continues to pursue the development of asymmetric weapons capabilities, including unmanned aerial vehicles, to carry out attacks on the United States, our service members and our partners and allies in the region,” explained Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley.
Palestinian officials sanctioned
In regard to Palestinian officials, the State Department announced sanctions (U.S. visa denials for PLO and PA officials) on July 31. As announced, these sanctions do not/not include financial asset freezes. Full text below, which explains Washington’s legal rationale:
Sanctioning Officials of the Palestinian Authority and Members of the Palestine Liberation Organization
The State Department has reported to Congress that the Palestine Liberation Organization (PLO) and Palestinian Authority (PA) are not in compliance with their commitments under the PLO Commitments Compliance Act of 1989 (PLOCCA) and the Middle East Peace Commitments Act of 2002 (MEPCA), including by initiating and supporting actions at international organizations that undermine and contradict prior commitments in support of Security Council Resolution 242 and 338, taking actions to internationalize its conflict with Israel such as through the International Criminal Court (ICC) and International Court of Justice (ICJ), continuing to support terrorism including incitement and glorification of violence (especially in textbooks), and providing payments and benefits in support of terrorism to Palestinian terrorists and their families. The United States is imposing sanctions that deny visas to PLO members and PA officials in accordance with section 604(a)(1) of the MEPCA. It is in our national security interests to impose consequences and hold the PLO and PA accountable for not complying with their commitments and undermining the prospects for peace.
Media Note, July 31, 2025