US sanctions cannot cut off our oil exports, Iran's oil minister says

Iranian oil exports are buoyant and cannot be halted by stepped-up US sanctions, Iran's Oil Minister Mohsen Paknejad said as Washington sanctioned him personally and expanded curbs on Tehran's crude trade.

"In Dey (January), we broke the record for oil exports in over a decade; we are announcing this news to make our people happy," Paknejad told the Entekhab News Agency shortly before the sanctions announcement on Thursday.

He also said that Iran’s oil exports had remained steady, adding, "In the past few months, we have not seen any drop in crude oil exports."

Paknejad had made similar claims earlier this year, saying in January that Iran had reached a new high in oil exports.

Soon after Paknejad's comments, the US Treasury announced sanctions against him, accusing Iran’s oil ministry of sending billions of dollars to the Islamic Revolutionary Guard Corps (IRGC) and other security forces. The move marks a major increase in Washington's efforts to cut off Iran’s oil revenues and force Tehran into talks over its nuclear program.

“The Iranian regime continues to use the proceeds from the nation’s vast oil resources to advance its narrow, alarming self-interests at the expense of the Iranian people,” said Treasury Secretary Scott Bessent. "Treasury will fight and disrupt any attempts by the regime to fund its destabilizing activities and further its dangerous agenda."

The sanctions also included entities in China, the main buyer of Iranian oil, and in India accused of helping Iran trade oil through a "shadow fleet" of ships that avoid detection. The US has been trying to block Iran’s secret oil sales and reduce its economic influence.

Iran’s Foreign Ministry also condemned the sanctions on Friday, calling them a "clear violation of international law." Spokesperson Esmail Baghaei said the sanctions showed the US was dishonest about its willingness to negotiate.

Successive rounds of US sanctions on tankers and companies involved in Iran's oil trade are slowing shipments to China, but trade with one of Iran's key allies continues in "dark mode" despite maximum pressure, according to Bloomberg.

Sanctions are affecting the trade by increasing costs and creating logistical hurdles, Bloomberg reported, citing Chinese refinery executives and shipping analysts.

In a separate report on Friday, Bloomberg said that the United States sanctioned Singapore-based Shipload Maritime Pte for its involvement in the Iranian oil trade—the first such case in the city-state. The US Department of State stated on March 13 that the company was penalized for "knowingly engaging in a significant transaction for the transport of petroleum or petroleum products from Iran," related to a ship-to-ship transfer near Indonesia in December.