The US Treasury on Wednesday imposed fresh sanctions on companies and individuals based in India and Turkiye over their support for Iran. It warned that it would keep targeting anyone who backed the Iranian government.
The measures form part of the Trump administration’s “Operation Economic Outcast”, which aims to cut off Iran’s ability to sell oil to fund its war with the United States and Israel. Treasury announced the sanctions a day after Democrats won control of both houses of Congress in the midterm elections, a result that followed voter anger over the Iran war and its effect on US inflation.
Indian network accused of supplying false flags
Treasury said the action targeted what it called “the vast criminal network” run by Suniel Kumar Sharma, based in India, and his wife, Jaspreet Preeti Shahid. Two other Indian citizens who head two of the couple’s businesses were also named, along with nine separate entities connected to Sharma.
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“Their schemes have provided false flags and certifications to sanctioned vessels involved in transporting Iranian petroleum, including vessels operating on behalf of the Iranian military and its proxies,” the department said in a statement.
According to the department, false flags and fake maritime certifications allow vessels engaged in illicit activity to avoid international safety and environmental rules. Such vessels often carry no indemnity insurance, which means they could potentially cause billions of dollars in damage to the economies of the countries whose waters they operate in.
Treasury’s Office of Foreign Assets Control also said Sharma and Shahid, based in Chandigarh, had fraudulently claimed to represent countries including Guyana, Eswatini and Laos when issuing flags and certifications. The couple’s network reportedly bought web domains and created websites offering flagging, seafarer training, certification and vessel classification services in those countries’ names. Several India-based entities used to set up fraudulent flagging registries were also designated.
Turkish company linked to Iranian airlines
The department also sanctioned Turkiye-based Fugo Ground Services Inc for what it described as its ongoing support of Iran’s heavily sanctioned aviation sector. Treasury said the company provided ground handling and other services to several US-sanctioned Iranian airlines that continued to fly to Turkiye. These included Iran Air Tour, Saha Airlines, Taban Airlines and Ata Airlines.
Treasury Secretary Scott Bessent said Washington would keep pursuing anyone who supported Tehran. “We know where you are, and we will sanction those who continue supporting the Iranian regime, whether by land, sea, or air,” he said in a statement.
Earlier in the week, Treasury had said its actions were decimating Iran’s economy, driving the rial to new lows and pushing domestic inflation to levels around 90 per cent. The latest sanctions also come after the US reimposed its blockade of Iranian ports on July 14, following the breakdown of a memorandum of understanding between Tehran and Washington to end the war.
Political reaction and oil market response
Brett Erickson, managing principal of Obsidian Risk Advisors, said the sanctions sent a strong signal that the Trump administration was escalating its economic pressure on Iran despite the election results. “Even after a brutal electoral defeat, Washington appears unwilling to take even the smallest step toward de-escalation,” he said.
On Wednesday, US President Donald Trump acknowledged that the Iran war and the resulting spike in gasoline prices had played a role in the election losses. He said, however, that the military conflict was worth it.
Oil prices fell sharply in volatile trading as investors weighed a possible end to the war in Iran. Treasury also issued a new alert to industry, warning businesses of the sanctions risk of dealing with vessels that may be falsely flagged.
