U.S. Targets Iran’s “Shadow Fleet” After Protest Crackdown and Internet Shutdown

Advanced | February 3, 2026

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The Big Move: Iran shadow fleet sanctions hit oil shipping

What the U.S. just did

On January 23, 2026, the U.S. Treasury Department (through OFAC) announced Iran shadow fleet sanctions targeting nine vessels and the companies that own or manage them. Treasury said these ships helped move hundreds of millions of dollars worth of Iranian oil and petroleum products to foreign markets — money the U.S. says Tehran uses to fund security services, weapons programs, and regional proxies. (U.S. Treasury)

Why now: protests + a blackout

Treasury tied the action to Iran’s violent crackdown on protesters and what it described as a complete shutdown of internet access meant to hide abuses from the outside world. (U.S. Treasury; AP)

What is a “shadow fleet,” anyway?

A “shadow fleet” is a network of vessels that helps sanctioned oil keep moving — often with older ships, hard-to-trace ownership, and routes that avoid normal scrutiny. Reuters describes these ships as typically having opaque ownership and operating outside the kind of top-tier insurance and transparency that many ports and major oil buyers expect. (Reuters)

The ships named in the sanctions

Real vessels, real routes

Treasury didn’t just speak in generalities — it listed specific ships and what they allegedly carried:

SEA BIRD (Palau-flagged) — linked to shipments of Iranian LPG to East Asia, Djibouti, and the UAE. (U.S. Treasury)
AVON (Comoros-flagged) — linked to Iranian LPG shipments to Bangladesh and Pakistan in 2025. (U.S. Treasury)
AL DIAB II (Palau-flagged) — linked to LPG shipments to Pakistan and Somalia. (U.S. Treasury)
CESARIA (Palau-flagged) — linked to millions of barrels of Iranian crude shipped to East Asia since late 2025. (U.S. Treasury)
LONGEVITY 7 (flag listed as unknown in the release) — linked to Iranian condensate received via ship-to-ship transfer, and also tied to Iranian methanol cargoes in prior years. (U.S. Treasury)
EASTERN HERO (Palau-flagged) — linked to Iranian high sulfur fuel oil shipments since 2025. (U.S. Treasury)
AQUA SPIRIT (Panama-flagged) — linked to Iranian petroleum products (including LPG) sent to Pakistan and other locations since 2025. (U.S. Treasury)
CHIRON 5 (Comoros-flagged) and KEEL — linked to Iranian naphtha shipments since 2025. (U.S. Treasury)

So when you hear “Iran shadow fleet sanctions,” it’s not just a headline — it’s a list of named ships, owners, and shipping patterns.

What sanctions actually mean in business terms

The “blocked property” effect

Treasury said that property and interests in property of the designated companies — if in the U.S. or controlled by U.S. persons — are blocked and must be reported to OFAC. Treasury also warned that entities owned 50% or more (directly or indirectly) by blocked persons can also become blocked. (U.S. Treasury)

The real pressure point

Even if a ship never touches a U.S. port, sanctions can make basic business services risky: banking, insurance, and chartering can become hard to access. That’s the goal — squeeze the logistics, not just the headlines. (AP; Reuters)

Vocabulary

Sanction (noun) – a government penalty that restricts trade, money, or business.
Example: “The U.S. announced a new sanction targeting shipping linked to Iranian oil.”
Crackdown (noun) – a harsh attempt to stop protests or opposition.
Example: “Treasury linked the action to a crackdown on protesters.”
Shadow fleet (noun) – ships used to move oil in ways that avoid normal oversight.
Example: “Officials said a shadow fleet helps Iran keep exporting oil.”
Designate (verb) – to officially name someone as subject to sanctions.
Example: “OFAC designated the companies that owned or managed the vessels.”
Petroleum (noun) – oil and oil-related products.
Example: “The vessels allegedly carried petroleum products like LPG and naphtha.”
Revenue (noun) – money earned from selling goods or services.
Example: “Treasury said oil revenue is diverted to fund security services.”
Opaque (adjective) – hard to see through or understand; not transparent.
Example: “Reuters described the ownership of shadow-fleet ships as opaque.”
Evade (verb) – to avoid something, especially rules or laws.
Example: “Some shipping networks try to evade sanctions enforcement.”
Blocked property (noun phrase) – assets frozen under sanctions rules.
Example: “Treasury said blocked property must be reported to OFAC.”
Ship-to-ship transfer (noun phrase) – moving cargo between vessels at sea.
Example: “LONGEVITY 7 was linked to cargo received via ship-to-ship transfer.”

Discussion Questions (About the Article)

Why did the U.S. connect these sanctions to protests and an internet shutdown?
What details in Treasury’s release made the story feel more concrete?
Which part of the “shadow fleet” idea feels most important: old ships, hidden ownership, or risky routes?
How do sanctions pressure a shipping network without using military force?
What could happen to businesses (banks, insurers, ports) that accidentally deal with a sanctioned entity?

Discussion Questions (About the Topic)

Do you think sanctions are an effective alternative to military action? Why or why not?
Should internet shutdowns during protests trigger international responses? What kind?
How can global trade stay “open” while still enforcing sanctions rules?
What responsibilities should shipping companies have for knowing their cargo and counterparties?
Where do you draw the line between “trade” and “national security”?

Related Idiom / Phrase

“Follow the money” – focus on where the money comes from and where it goes.

Example: “These sanctions are basically a ‘follow the money’ strategy — cut off the cash from oil exports that funds repression.”

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This article was inspired by: U.S. Treasury (OFAC press release), Just the News, Reuters, and Associated Press.