US targets UAE, Hong Kong firms over Iran trade

The US has picked up the pace of imposing sanctions on foreign intermediaries accused of engaging in the transport or sale of Iranian oil and petrochemical products to China.

The latest action, announced by the US Treasury Department, targets almost 40 entities in the UAE, Hong Kong, Singapore and Turkey. "The US will continue to disrupt attempts to evade US sanctions, and we will use the tools at our disposal to protect both the US and international financial system," secretary of state Tony Blinken said.

The US Treasury took similar actions earlier this month and a month ago, mentioning a common theme — the use of intermediaries, shell companies, a so-called dark fleet and storage facilities in neighboring countries. Iran continues to export crude, despite a US sanctions regime that in theory makes all such sales liable to criminal and economic penalties.

Indirect talks between Tehran and Washington to revive the 2015 Iran nuclear deal broke down last year over Iranian objections over the extent of sanctions relief it would get under a renewed agreement.

Tehran has recently suggested that nuclear talks could resume soon, claiming renewed offers from Washington through regional intermediaries. The State Department shrugged off Tehran's claims as "lies" and said that resuming talks over the nuclear deal was not a priority for Washington.

Tensions between the West and Iran have continued to mount since last year, stoked by Iran's ongoing support for Russia in its war against Ukraine and alleged human rights abuses.

Treasury today separately targeted firms in China accused of supplying parts for the Iranian military drones that have ended up being used by Russia in its war with Ukraine.

By Haik Gugarats