US Treasury sanctions Indian and Turkish networks it says helped Iran sell oil and fly

The US Treasury imposed fresh sanctions on Wednesday on a group of Indian and Turkish businesses and individuals it accuses of helping Iran, Reuters reported. The department said it would keep pursuing anyone who backs the Iranian government.

The measures form part of what the Trump administration calls “Operation Economic Outcast,” a campaign meant to stop Iran from selling oil to pay for its war with the United States and Israel, according to Reuters.

An alleged fake-registry ring

The principal targets are Suniel Kumar Sharma, an India-based man, and his wife, Jaspreet Preeti Shahid, along with two other Indian nationals who run two of their firms and nine more entities tied to Sharma. Treasury described them as a vast criminal network.

In its statement, the department said the scheme supplied counterfeit flags and certificates to sanctioned ships hauling Iranian petroleum, among them vessels working for Iran’s military and its proxies. Reuters said the Treasury’s sanctions office found that the couple, based in Chandigarh, falsely presented themselves as acting for Guyana, Eswatini and Laos.

Sharma’s network purchased web domains and built sites advertising flagging, seafarer training and certification, and vessel classification, the report said. The couple also ran a set of Indian companies that set up sham registries, and those firms were designated too.

Treasury noted that ships sailing under false flags and fake certificates avoid safety and environmental rules and carry no indemnity insurance, so they could inflict billions of dollars in damage on coastal states. The sanctions office also issued an alert to industry about the risk of dealing with vessels that may carry false flags.

Turkish aviation link

In Turkey, the department designated Fugo Ground Services Inc for continuing to assist Iran’s heavily sanctioned aviation sector. Treasury said the company provided ground handling and other services to Iran Air Tour, Saha Airlines, Taban Airlines and Ata Airlines, all under US sanctions, as they kept flying to Turkey.

Treasury Secretary Scott Bessent said: “We know where you are, and we will sanction those who continue supporting the Iranian regime, whether by land, sea, or air.”

Political backdrop

The announcement came a day after Democrats won control of both houses of Congress, with voters venting anger over the Iran war and its effect on US inflation, Reuters reported. Trump acknowledged on Wednesday that the war and higher gasoline prices contributed to the losses, but argued the conflict was worth it.

Brett Erickson of Obsidian Risk Advisors told Reuters the sanctions showed Washington stepping up economic warfare despite the setback. “Even after a brutal electoral defeat, Washington appears unwilling to take even the smallest step toward de-escalation,” he said.

Treasury said last week that its measures were wrecking Iran’s economy, pushing the rial to new lows and domestic inflation to around 90%. Reuters noted the latest step adds pressure on Iranian oil sales after the US restored its blockade of Iranian ports on July 14, following the collapse of a memorandum of understanding between Tehran and Washington aimed at ending the war.

On Polymarket, traders put the chance that the US announces an end to the Iranian blockade by December 31, 2026 at 44%, up from 39% a day earlier.