World

US Treasury Targets Indian and Turkish Firms for Supporting Iran’s Oil and Aviation Sectors

By Livemint

The U.S. Treasury Department announced new sanctions on Wednesday against individuals and companies based in India and Turkey for allegedly aiding Iran. The action is part of the Trump administration’s “Operation Economic Outcast,” which seeks to curb Iran’s revenue from oil exports and prevent the use of those funds to finance its conflict with the United States and Israel.

The sanctions focus on an India‑based network that reportedly provided fraudulent maritime flags and certifications to vessels carrying Iranian petroleum. The Treasury also designated a Turkish company accused of supporting Iran’s aviation sector.

The announcement came a day after Democrats gained control of both chambers of Congress in the U.S. midterm elections, amid voter concerns over the Iran war and its impact on inflation.

The Treasury said earlier sanctions had severely affected Iran’s economy, contributing to a sharp decline in the rial and domestic inflation approaching 90%. The latest action names India‑based Suniel Kumar Sharma, his wife Jaspreet Preeti Shahid, and two other Indian nationals who head businesses linked to the couple. Nine additional entities associated with Sharma were also sanctioned.

According to the Treasury, Sharma’s network facilitated the movement of Iranian petroleum by issuing false vessel flags and maritime certifications. Some vessels were allegedly operating on behalf of Iran’s military and affiliated groups. Sharma and Shahid, based in Chandigarh, falsely claimed to represent countries such as Guyana, Eswatini and Laos to issue vessel registrations and certifications. The couple allegedly established websites and purchased web domains to offer services such as vessel flagging, seafarer training, certification and ship classification. Their network also operated through several India‑based companies that were allegedly used to create fraudulent maritime registries.

The Treasury warned that false registrations and certifications allow vessels involved in illicit activities to bypass international restrictions and continue operating. It also cautioned that vessels using fraudulent flags may operate without appropriate indemnity insurance and could expose countries whose territorial waters they enter to potentially billions of dollars in economic and environmental liabilities.

Alongside the Indian entities, the Treasury designated Turkey‑based Fugo Ground Services Inc for allegedly providing continued assistance to Iran’s heavily sanctioned aviation industry. The company reportedly supplied ground‑handling and other services to several Iranian airlines already under U.S. sanctions, including Iran Air Tour, Saha Airlines, Taban Airlines and Ata Airlines.

U.S. Treasury Secretary Scott Bessent said Washington would continue targeting individuals and companies that facilitate support for Tehran, regardless of whether their activities involve land, sea or air transport. "We know where you are, and we will sanction those who continue supporting the Iranian regime, whether by land, sea, or air," Bessent said in a statement.

The Treasury’s Office of Foreign Assets Control also issued a new advisory to the industry, warning businesses about the sanctions risks associated with vessels operating under potentially fraudulent flags.

Brett Erickson, managing principal of Obsidian Risk Advisors, said the latest action demonstrated that the Trump administration was stepping up its economic pressure on Iran despite the Republicans’ electoral setback. "Even after a brutal electoral defeat, Washington appears unwilling to take even the smallest step toward de‑escalation," he said.