Washington sanctions intermediaries in Iranian trade, allows some transactions until November 20
Key Facts
The United States imposed Iran-related sanctions on October 21, 2026, targeting legal and maritime intermediaries the Treasury Department accuses of facilitating Iranian trade and concealing its ultimate beneficiaries. The Office of Foreign Assets Control added law firm Karnakis & Karnakis and Roxit Maritime Shipping and Trading to its sanctions list. The list also included Amigos Singapore and Wills Shipping Line, according to the office's official register. The measures fall under Operation Economic Pariah, which Treasury Secretary Scott Bessent announced on August 24, 2026, as part of a broader economic campaign against Iran. Bessent warned supporters of the Iranian regime, whether involved in transporting oil or working in law firms, saying in the Treasury statement: "We will find you and sanction you."
The Treasury said Karnakis & Karnakis established companies that owned vessels trading in Iranian goods. It added that the firm's employees held management positions in registered companies to conceal the ultimate beneficial owners, describing the purpose of those arrangements as "concealing the identity of the ultimate beneficial owners." On the maritime side, the department accused the Roxit-managed vessels Anemos, Gloris and Pride of transporting Iranian goods over the previous year, including petrochemicals and steel products. It said Dubai-based Wills Shipping Line acted as a shipping agent for sanctioned Sparrow Trading. The company also dealt with Amigos, according to the statement, which outlined the targeted companies' roles in shipping, ownership and management services.
The U.S. action extended to banking relationships, with the Financial Crimes Enforcement Network saying it was coordinating with European partners, including Greece. The network used an administrative subpoena to advance an investigation into a Greek bank's potential ties to Iran and its proxies. It also sent multiple requests for information on banks' relationships with Iranian financial institutions listed by the Office of Foreign Assets Control. The office had warned foreign financial institutions on October 5, 2026, of sanctions risks if they continued dealing with Iran or its financial sector. In a parallel effort to combat financial sanctions evasion, the Treasury said a network investigation identified transactions by agents of the A7 network exceeding $17 billion globally between January 2025 and June 2026.
Under the current measures, the blocking sanctions cover property of the listed individuals and entities located in the United States, according to the Treasury statement. They also cover property in the possession or control of U.S. persons. The blocking sanctions extend to entities owned 50% or more, directly or indirectly, by blocked persons. That ownership is counted whether held by a single blocked person or by multiple blocked persons in aggregate, according to the statement. The department also warned that certain transactions with those designated in the current action could expose participating foreign financial institutions to secondary sanctions.
In a separate security development in Saudi Arabia, Reuters quoted State Department spokesperson Tommy Pigott as saying the departure order applied to non-essential U.S. government employees and their family members in the kingdom. Pigott said Houthi attacks had targeted civilian airports and critical infrastructure in Saudi Arabia. He added that they had caused "civilian casualties and severe travel disruptions." As part of British support for Saudi Arabia's defence, Britain's defence secretary said the mission to refuel Saudi aircraft in the air would be extended by an additional 90 days, according to the Associated Press. The agency also reported that Lufthansa and Air France had cancelled flights to Riyadh until mid-November.
The Office of Foreign Assets Control set a deadline for winding down certain transactions involving the targeted parties under conditional general licences. General Licence GG permits the wind-down of transactions involving Karnakis & Karnakis until 12:01 a.m. Eastern Standard Time on November 20, 2026. It requires payments owed to blocked persons to be deposited into blocked accounts. General Licence HH permits, until the same deadline and subject to its terms, the wind-down of transactions and activities involving safety and emergency repairs concerning the covered parties and vessels. Cargo delivery and unloading are permitted only if the cargo is of non-Iranian origin and was loaded on or before October 21, 2026. The authorisation excludes ports in Iran and Russia and ports under their control.