Fake Ship Flags, Iran Oil Trade: US Sanctions Indian Entities In Expanding Crackdown On Tehran

(MENAFN- Live Mint) The US Treasury Department on Wednesday imposed fresh sanctions on individuals and companies based in India and Turkey over their alleged support for Iran, Reuters reported.

The action is part of the Trump administration's 'Operation Economic Outcast ', aimed at restricting Iran's ability to generate revenue through oil exports and use the proceeds to finance its war with the US and Israel.

According to Reuters, the latest sanctions target an India-based network allegedly involved in providing fraudulent maritime flags and certifications to vessels transporting Iranian petroleum. The US Treasury also designated a Turkish company accused of supporting Iran's aviation sector.

The announcement came a day after Democrats made significant gains in the US midterm elections, securing control of both chambers of Congress amid voter concerns over the Iran war and its contribution to rising inflation.

The Treasury Department said its earlier sanctions had severely affected Iran's economy, contributing to a sharp decline in the rial and domestic inflation approaching 90%.

Also Read | US sanctions 4 Indian firms under Operation Economic Outcast: Who are they Who are the Indians targeted by US sanctions?

The latest action targets India-based Suniel Kumar Sharma, his wife Jaspreet Preeti Shahid and two other Indian nationals who head businesses associated with the couple. Nine additional entities linked to Sharma were also sanctioned.

The Treasury Department alleged that Sharma's network facilitated the movement of Iranian petroleum by providing false vessel flags and maritime certifications. Some of the vessels were allegedly operating on behalf of Iran's military and its affiliated groups.

According to the department, Sharma and Shahid, who are based in Chandigarh, falsely claimed to represent countries including Guyana, Eswatini and Laos to issue vessel registrations and certifications.

The couple allegedly established websites and purchased web domains to offer services such as vessel flagging, seafarer training, certification and ship classification. Their network also operated through several India-based companies that were allegedly used to create fraudulent maritime registries.

The Treasury Department said such false registrations and certifications allow vessels involved in illicit activities to circumvent international restrictions and continue operating.

It also warned that vessels using fraudulent flags may operate without appropriate indemnity insurance and could expose countries whose territorial waters they enter to potentially billions of dollars in economic and environmental liabilities.

Also Read | US midterms: How a Democratic Congress could constrain Trump on Iran, Ukraine Why has the US sanctioned a Turkish company?

Alongside the Indian entities, the US Treasury designated Turkey-based Fugo Ground Services Inc for allegedly providing continued assistance to Iran's heavily sanctioned aviation industry.

The department said the company provided ground-handling and other services to several Iranian airlines already under US sanctions, including Iran Air Tour, Saha Airlines, Taban Airlines and Ata Airlines.

The move extends Washington's pressure beyond Iran's oil trade to businesses and service providers that allegedly support its aviation operations.

US warns businesses against supporting Iran

US Treasury Secretary Scott Bessent said Washington would continue targeting individuals and companies facilitating support for Tehran, regardless of whether their activities involved land, sea or air transport.

"We know where you are, and we will sanction those who continue supporting the Iranian regime, whether by land, sea, or air," Bessent said in a statement.

The Treasury's Office of Foreign Assets Control (OFAC) also issued a fresh advisory to the industry, warning businesses about the sanctions risks associated with vessels operating under potentially fraudulent flags.

Brett Erickson, managing principal of Obsidian Risk Advisors, said the latest action demonstrated that the Trump administration was stepping up its economic pressure on Iran despite the Republicans' electoral setback.

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

MENAFN04112026007365015876ID1111917597