US Treasury Sanctions Indian and Turkish Firms and Individuals Over Support for Iran's Oil Trade

On Wednesday, the US Treasury announced new sanctions against companies and individuals based in India and Turkey, accusing them of helping Iran keep its oil and aviation trades moving. The department warned that it would keep pursuing anyone who supports the Iranian government.

The action falls under what the Trump administration calls "Operation Economic Outcast," a campaign meant to cut off Iran's ability to sell oil and so pay for its war with the US and Israel. It came a day after Democrats made large gains in the midterm elections and took control of both houses of Congress, with voters voicing anger over the Iran war and its role in pushing up US inflation.

The main target in India was a network run by Suniel Kumar Sharma. Treasury called it a vast criminal network. Also named were his wife, Jaspreet Preeti Shahid, and two other Indian citizens who head two of the couple's businesses. Nine separate entities connected to Sharma were designated as well. Treasury said their schemes supplied false flags and certifications to sanctioned vessels carrying Iranian petroleum, including ships working for the Iranian military and its proxies.

According to Treasury, Sharma and Shahid, who are based in Chandigarh, falsely claimed to represent countries such as Guyana, Eswatini and Laos in issuing flags and certifications. Their network bought web domains and built websites that purported to offer services for those countries and others, including flagging, seafarer training and certification, and vessel classification. The couple also ran a group of India-based entities used to set up fraudulent flagging registries, and those firms were sanctioned too.

The department stressed why this matters. False flags and fake maritime certifications let vessels engaged in illicit activity avoid international safety and environmental rules, and they carry no indemnity insurance. Such ships could potentially cause billions of dollars in damage to the economies of countries whose waters they pass through. The Office of Foreign Assets Control issued a new alert to industry about the sanctions risk of dealing with potentially false-flagged vessels.

In Turkey, the Treasury designated Fugo Ground Services Inc for ongoing support of Iran's heavily sanctioned aviation sector. It said the company provided ground handling and other services to several US-sanctioned Iranian airlines that kept flying to Turkey, among them Iran Air Tour, Saha Airlines, Taban Airlines and Ata Airlines.

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

The measures tighten pressure on Iranian oil sales after the US reimposed its blockade of Iranian ports on July 14, following the collapse of a memorandum of understanding between Tehran and Washington meant to end the war. Treasury said last week that its actions were devastating Iran's economy, driving the rial to new lows and pushing domestic inflation to around 90%. With Treasury promising more designations, shipping and aviation service providers dealing with Iran are the ones to watch.