A shipping network is sanctioned by the US for delivering Iranian oil under false pretenses of Iraqi

The US Treasury Department on Tuesday sanctioned a network of shipping companies and vessels led by an Iraqi-Kittitian businessman for smuggling Iranian oil disguised as Iraqi oil.

While nuclear negotiations have stalled, President Donald Trump‘s administration continues to put pressure on Iran. After a 12-day battle broke out in June, a sixth round of negotiations was put on hold.

The road to nuclear discussions is not blocked, but U.S. demands for restrictions on Iranian weapons are impeding the possibility of talks, a top Iranian official stated on Tuesday.

The Treasury said the network, run by a businessman who is a citizen of iraq and St. Kitts & Nevis and is based in the United Arab Emirates, operates primarily by covertly blending Iranian oil with Iraqi oil, which is then marketed intentionally as solely of Iraqi origin to avoid sanctions.

Treasury Secretary Scott Bessent stated in a statement, “Treasury will further degrade the regime’s ability to carry out attacks against the United States and its allies by targeting Iran’s oil revenue stream.”

“We remain committed to an oil supply free from Iran and will continue our efforts to disrupt the ongoing attempts by Tehran to evade U.S. sanctions,” he stated.

A request for response from Iran’s mission to the UN in New York was not immediately answered.

The businessman and Babylon Navigation DMCC, one of two UAE-based businesses he owns and operates that oversee the network’s activities, as well as a number of vessels were designated by Treasury for being owned by or having performed direct or indirect work on behalf of Babylon.

Treasury determined that Babylon has a stake in a number of tankers flying the flag of Liberia, including the Adena, Liliana, and Camilla. According to the department, the tankers assisted the network in blending Iraqi and Iranian oil in Iraqi ports, the Arabian Gulf, and at sea through ship-to-ship transfers.

Additionally, in order to obfuscate the extent of the businessman’s ownership over the vessels, Treasury designated a number of Marshall Islands-based companies, including Tryfo Navigation, Keely Shiptrade Limited, Odiar Management S.A., Panarea Marine S.A., and Topsail Shipholding Inc., as registered owners.