U.S. Treasury Targets 7 Ships and Brokers in Campaign Against Iranian Shipping Network

Key Facts

The U.S. Treasury Department announced on October 21, 2026, sanctions on law firm Karnakis and Karnakis and shipping facilitators in Singapore and the UAE, along with a network linked to Iranian cargo ships. The department said the action, part of Operation Economic Outcast, targets parties that helped conceal and transport Iranian goods. The goods included oil, petrochemicals and steel, according to the Treasury statement. The department says ships linked to the network transported Iranian goods worth hundreds of millions of dollars. The sanctions extend from the vessels to the brokers and companies that arranged ownership and shipping, according to the statement.

The Treasury identified seven Panama-flagged vessels operated by Roxette Maritime Shipping and Trading S.A. as blocked property. It said the vessels transported Iranian-origin cargoes during the previous year. It also designated the two small support vessels WHALES DIAMOND and WHALES PEARL, which are UAE-flagged and registered to Whales Shipping Line LLC. The action thus covered seven vessels operated by Roxette and two vessels affiliated with Whales. The inclusion of the two companies, alongside the law firm and shipping facilitators, shows the breadth of the targeting across different links in the transport and ownership arrangements.

The Treasury said Karnakis and Karnakis established front companies to own vessels in the shadow fleet and ship Iranian goods, including oil, petrochemicals and steel. The department estimated that vessels linked to those companies shipped goods worth hundreds of millions of dollars. Regarding Whales, the Treasury said it acted as an agent for a front company that arranged the purchase of tens of millions of dollars’ worth of Iranian petrochemicals. It added that Whales conducted business worth hundreds of thousands of dollars with Amigoz Singapore PTE. Ltd. These details place front companies and agents at the center of the action, alongside the vessels themselves.

The announcement follows the Treasury Department’s statement on October 8 that Operation Economic Outcast targets the remaining vessels in Iran’s shadow fleet, which transports oil and petroleum products to foreign markets. EL7 reported on October 9 that 17 vessels linked to the fleet had been targeted with U.S. sanctions. The October 21 action adds companies, vessels and brokers to a continuing campaign against shipping networks linked to Iran. Licenses issued by the Office of Foreign Assets Control allow the wind-down of certain transactions involving Karnakis and Karnakis, and limited activities involving people or vessels blocked on October 21. The licenses also cover limited safety and environmental activities and the unloading of cargoes, according to their text.

In the oil market, Brent crude ended the week of October 23 up 6%, while West Texas Intermediate rose 2.3%, according to Reuters. The agency linked oil’s gains to supply disruption concerns after Houthi attacks in Saudi Arabia, while UAE authorities reported an oil spill off Umm Al Quwain. An LPL Financial strategist said, "Supply disruption fears drove gains" after a series of attacks that included energy infrastructure. Reuters also reported that Saudi Aramco ordered its Dhahran headquarters evacuated on Thursday as fighting between Saudi Arabia and the Houthis escalated. U.S. stock indexes fell in Friday’s session; the S&P 500 dropped 0.5%, the Dow Jones 1.2% and the Nasdaq 0.2%.

On inventories, the Energy Information Administration report issued on October 21 covered the week ended October 16. Its data showed U.S. crude oil stocks stood at 1,498.245 million barrels at the end of that week. Commercial crude inventories, excluding lease stocks, fell from 415.577 million barrels on October 9 to 412.517 million barrels on October 16. The next weekly EIA report is due on October 28, according to the schedule included in the first draft. The market is awaiting new inventory data as price concerns focus on the risk of supply disruptions, according to Reuters coverage.