WASHINGTON, Nov 5 — The United States (US) Treasury issued fresh sanctions on Wednesday against companies and individuals based in India and Turkiye for supporting Iran, warning that it would continue to go after anyone who supported the Iranian government.
The sanctions are part of the Trump administration's "Operation Economic Outcast," which aims to cut off Iran's ability to sell oil to fund the war with the US and Israel.
It unveiled the new sanctions a day after Democrats made huge gains in midterm elections, winning control of both houses of Congress as voters expressed anger about the Iran war and its impact on fueling US inflation.
Last week, the US Treasury said its actions were decimating Iran's economy, driving the rial currency to new lows and sending domestic inflation rates to levels around 90 per cent.
Wednesday's action targeted what it called "the vast criminal network" run by India-based Suniel Kumar Sharma, his wife Jaspreet Preeti Shahid, and two other Indian citizens who head two of the couple's businesses, as well as nine separate entities connected to Sharma.
"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 US Treasury said in a statement.
False flags and fake maritime certifications allow vessels engaged in illicit activity to evade international safety and environmental regulations while carrying no indemnity insurance. That means such vessels could potentially cause billions of dollars in damages to the economies of the countries in whose territorial waters they operate.
It also sanctioned Turkiye-based Fugo Ground Services Inc for its ongoing support of Iran's heavily sanctioned aviation sector.
US Treasury Secretary Scott Bessent said Washington will continue to target anyone who supports 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.
Obsidian Risk Advisors managing principal Brett Erickson said the sanctions sent a powerful message that the Trump administration was escalating its economic warfare against Iran, despite the bruising 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 the role the Iran war — and the resulting spike in gasoline prices — had played in the election losses, but said the military conflict was worth it. Oil prices fell sharply in volatile trading as investors weighed a possible end to the war in Iran.
The US Treasury's Office of Foreign Assets Control also issued a new alert to industry, warning of the sanctions risk of dealing with potentially false-flagged vessels.
Fake certifications
It said Sharma and Shahid, based in Chandigarh, India, had fraudulently claimed to represent countries like Guyana, Eswatini, and Laos in issuing flags and certifications, allowing vessels operating on behalf of the Iranian military and its proxies to evade international restrictions and keep operating.
Sharma's network bought web domains and created websites claiming to offer services on behalf of these countries and others, including flagging, seafarer training and certification, and vessel classification.
The couple also managed a network of India-based entities that were used to establish fraudulent flagging registries, and those firms were also designated for sanctions.
Fugo Ground Services, the Turkish company designated by OFAC, provided ground handling and other services to several US-sanctioned Iranian airlines that continued to fly to Turkiye, including Iran Air Tour, Saha Airlines, Taban Airlines, and Ata Airlines.
The move tightens the squeeze on Iranian oil sales 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.
