The United States on Friday announced new sanctions on Iran’s “ghost fleet” of ships and companies connected to Iran’s energy sector in response to Tehran’s recent attack on Israel.
Iran’s “ghost fleet” of ships and companies in the United Arab Emirates, Liberia and Hong Kong and other jurisdictions that allegedly obfuscate and transport Iranian oil for sale to buyers in Asia are now sanctioned.
Meanwhile, the U.S. State Department designated a system of companies based in Suriname, India, Malaysia and Hong Kong for allegedly arranging for the sale and transport of petroleum and petroleum products from Iran.
Jake Sullivan, the U.S. national security advisor, said the new sanctions “will help further deny Iran financial resources used to support its missile programs and provide support for terrorist groups that threaten the United States, its allies and partners.”
The new penalties are meant to stop Iranian financial resources from using the U.S. financial system. Additionally, Americans can’t participate in dealings with them.
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On October 1, Iran fired a barrage of nearly 200 missiles at Israel. Almost all of the strikes were intercepted, but the explosions that were heard from Jerusalem to the Jordan Valley sent people across Israel into bomb shelters. One Palestinian in the Israeli-controlled West Bank was reportedly killed and two Israelis were injured by falling shrapnel and debris that also caused damage to the area, according to The Times of Israel.
Iran said its attack was in retaliation for Israel targeting the Tehran-backed militant group Hezbollah in Lebanon.
Israel and Hezbollah have been exchanging fire since its war with Hamas in Gaza started following the Palestinian militant group’s surprise attack on October 7, 2023, but tension has escalated ever since Hezbollah’s electronic devices exploded last month in a coordinated attack that Hezbollah claimed Israel was behind. Israel has not taken responsibility for the attack that killed dozens and injured thousands more.
Treasury Secretary Janet Yellen said Friday that the U.S. “will not hesitate to take further action to hold Iran accountable.”
But energy sanctions on Iran could hike prices for global commodities that the U.S. and its allies need. There has already been a scare in the oil market this month amid escalating tensions in the Middle East, which have led to concerns over an out-all regional war.
Oil prices surged on October 3 after President Joe Biden said the White House was “discussing” if it would support Israel targeting Iran’s oil facilities. The next day, Biden said at a White House press briefing, “If I were in their shoes, I’d be thinking about other alternatives than striking oil fields.”
This article includes reporting from The Associated Press.
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