‘Objective Is to Sever Every Economic Lifeline’: US Hits 4 Indian Firms, Pressures China, Moves to Choke Iran’s Oil Trade

Washington: The United States has launched one of its broadest economic offensives against Iran in an attempt to choke off the financial networks that continue to support Tehran’s oil trade, military programmes and access to international markets. 

US Treasury Secretary Scott Bessent on Monday announced sanctions against nearly 60 individuals, companies and vessels across several countries, while warning governments and businesses that continue dealing with Iran that they could face isolation from the US-led financial system.

The latest measures come as the US-Israeli war with Iran approaches its six-month mark and diplomatic efforts remain deadlocked. Washington says its immediate objective is to cut the channels through which Tehran earns oil revenue, moves money and obtains sensitive technology.

“We are launching an economic onslaught against Iran’s financial connections around the globe. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone. We are going to hold everyone accountable, and this is economic asphyxiation of this regime,” Bessent said.

The Treasury Department has identified five areas that it says Iran uses to sustain its economy, digital assets, technology, gold, aviation and shipping. The US has also mapped networks allegedly involved in oil smuggling, sanctions evasion, procurement and financial transfers. 

Bessent described the campaign as a “one-two punch”, combining the existing blockade with what he called the toughest sanctions in US history. He said the broader goal was to “collapse this regime”.

India Faces Direct US Action Over Iran Oil Trade

The US has directly targeted Indian businesses and individuals as Washington expands its campaign to cut Iran off from international revenue. Four India-based companies and three Indian nationals have been sanctioned over their alleged involvement in transactions involving Iranian petroleum and petrochemical products.

The companies named by the US are Portease Partners LLP, Sadashiva Overseas Ltd, PP Softtech Pvt Ltd and Prakrutees Infra Impex India Pvt Ltd. The three Indian nationals designated by Washington are Indrismiya Ashrafmiya Shekh and Harish Ramchandra Rangi, associated with Portease Partners, and Prashant Garg, linked to PP Softtech.

The action is part of a wider US sanctions package covering nearly 60 individuals, entities and vessels that Washington says are connected to Iran's petroleum trade, military-related procurement, shipping and other revenue-generating networks.

What does Washington allege against the Indian firms?

According to the US State Department, Portease Partners, described as an India-based customs broker, helped facilitate multiple shipments of Iranian petrochemical products to India. Washington has also put specific values on petroleum transactions it attributes to three of the sanctioned companies. The US alleges that Sadashiva Overseas imported about $69 million worth of Iranian-origin petroleum products between February 2024 and June 2025.

PP Softtech is accused of importing approximately $25 million worth of Iranian-origin petroleum products between January 2024 and June 2025. Similarly, Washington alleges that Prakrutees Infra Impex India Pvt Ltd imported around $25 million worth of Iranian petroleum products between May 2023 and February 2026.

The four companies have been designated under Executive Order 13846, which allows the US to impose sanctions on entities involved in significant transactions involving Iranian petroleum or petrochemical products. The designations put the Indian firms directly within the expanding reach of Washington's Iran sanctions programme, as the US seeks to track not only Iranian entities but also overseas companies involved in maintaining Tehran's oil revenues.

For Indian companies dealing in Iranian petroleum and petrochemical products, this could raise the risks of losing access to the US financial system, facing restrictions on international transactions and coming under greater scrutiny from American authorities. 

China’s Iran oil trade is the bigger test for Washington

If India faces disruption to trade routes, China presents a much larger challenge for Washington. China remains Iran’s biggest oil customer and has continued purchasing discounted Iranian crude, largely through independent refineries and complex shipping and payment arrangements.

Iranian oil shipments to China fell to about 534,000 barrels per day in August from 823,000 barrels per day in July, but the volumes remain substantial. Washington has made it clear that Chinese companies are not automatically beyond the reach of its sanctions. Asked whether Chinese banks dealing with Iran could eventually be targeted, Bessent said, “no one is above the reach of US sanctions”.

The latest package, however, did not target major Chinese financial institutions suspected of facilitating Iranian oil transactions. That omission is significant given the potential consequences of directly targeting China's banking system.

The US appears to be leaving room for further escalation while giving companies and governments an opportunity to reduce their dealings with Tehran.

“Why would I want to blow up the global financial system?” Bessent said. The sanctions announced this week target Chinese and Hong Kong-based businesses involved mainly in procurement, logistics, shipping and technology networks linked to Iran.

Among them are Shenzhen Sweet Ocean Technology Ltd, which Washington accused of helping Iranian customers obtain sensitive equipment and technology. Its director, Tian Jianbai, was also sanctioned.

Other Chinese entities targeted include Shenzhen Huamei Lianyun International Logistics Co Ltd, Shenzhen Bositong Logistics Co Ltd, Bositong Supply Chain Shenzhen Co Ltd and Lilimoon Navigation Inc. 

In Hong Kong, Sweet Ocean Industrial Ltd and several companies linked to its procurement network were sanctioned. The US also targeted entities it accused of helping operate Iran's “shadow banking” networks and companies involved in shipping and bunkering services for Iranian crude.

Beijing warns Washington: sanctions will not solve the conflict

China has strongly rejected the US approach and warned that it could take retaliatory action to protect its interests. Chinese Foreign Ministry spokesperson Lin Jian said China's economic cooperation with Iran is conducted within international law and should not be disrupted by Washington.

“China’s cooperation with Iran complies with international law. We are closely following the situation and will do everything necessary to protect China’s rights and interests," Lin said.

Beijing has repeatedly opposed unilateral US sanctions, arguing that such measures lack international legal authority and do not resolve the underlying conflict.

“China is firmly against sanctions that have no basis in international law or UN Security Council mandate. Economic warfare and maximum pressure provide no solution. They only serve to fuel tensions, disrupt global economic and financial order, and hurt everyone else’s interests. Dialogue and negotiation is the only right way forward," Lin said.

China's position adds another layer of complexity for Washington. Beijing has legal mechanisms that allow it to respond to foreign sanctions affecting Chinese companies, while its dominance in critical minerals gives it significant economic leverage. The timing is also sensitive as Trump is expected to meet Chinese President Xi Jinping in Washington in the coming weeks.

Which other countries and companies are caught in the sanctions net?

The latest US action extends well beyond Iran, reflecting Washington's attempt to follow the international networks that Tehran allegedly uses to move oil, money and technology.

In Iran, the sanctions include organisations linked to the Ministry of Intelligence and Security and the Ministry of Defence and Armed Forces Logistics. The US also targeted individuals it accused of involvement in cyberactivities.

Hong Kong has emerged as another major focus, with companies accused of acting as procurement intermediaries, facilitating payments and supporting Iranian oil shipments.

In Singapore, sanctions have targeted businesses linked to Iran's petroleum sector and individuals connected to Iranian oil networks. Azure Shipping Pte Ltd, Mansoor Tayabbhai Gandhi, Trans Arctic Global Marine Services and Arc Chartering are among those designated.

Singapore-based Wellbred Capital Pte Ltd and related companies in Switzerland and the UAE were also targeted over alleged links to Iranian oil magnate Mohammad Hossein Shamkhani.

Malaysia-based Vast Mart Sdn Bhd was accused of transferring funds to Hong Kong's Sweet Ocean. 

In the UK, shipping company Estanica Trading Ltd was sanctioned over an alleged Iranian oil shipment involving a Gambia-flagged vessel. France-based La Nivernaise de Raffinage SAS was also included because of its ownership links to Wellbred Trading.

The US further targeted UAE-based businessmen accused of acting as brokers for Iranian shadow fleets. A Marshall Islands-based shipping company, Sifra Shipping Co, was sanctioned over alleged transportation of Iranian liquefied petroleum gas and ethylene.

Greek nationals Almpertos Tsoris and Georgios Tsoris were also linked by Washington to the Shipoil network and accused of coordinating with sanctioned Iranian entities and providing bunkering services.

Overall, the countries and territories affected by the latest designations include Iran, China and Hong Kong, Singapore, Switzerland, the UAE, Malaysia, the Marshall Islands, the UK, France, Syria, Ukraine and Greece.

Iran’s economy shows the immediate cost

Iran’s economy is already feeling the impact of the sanctions, with the rial falling to a record 2.02 million per US dollar. Rice prices have risen 60% and beef prices more than 150%, while the IMF expects the economy to contract by over 5%.

Tehran has rejected the latest sanctions, arguing that years of US restrictions have forced the country to develop mechanisms to withstand such pressure.

Iranian Economy Minister Ali Madanizadeh said the measures would not achieve Washington's objectives, while government spokeswoman Fatemeh Mohajerani said the government would guide the country through the latest crisis. Iranian officials have also warned that continued economic pressure could trigger a much wider energy crisis.

Mohsen Rezaei, secretary of Iran's Supreme National Security Council, warned that if the “economic war” continues, “not a single drop of oil will be exported” from the Persian Gulf.