US imposes fresh sanctions on Iran’s military oil sales, Treasury says

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May 28, 2026

U.S. and Iranian flags are seen in this illustration taken March 23, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights , opens new tab

WASHINGTON, May 28 (Reuters) – The U.S. said on Thursday it has imposed new sanctions on Iran’s military ‌oil trade, even as Washington and Tehran reached a tentative agreement to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz.

The Treasury Department said it had sanctioned eight vessels involved ⁠in transporting Iranian crude oil and petroleum products to global markets. The vessels included the Marshall Islands-flagged oil tanker Flora, the Comoros-flagged crude oil tanker Hauncayo and the Panama-flagged tanker Ill Gap.

“We will not allow the Iranian government to increase its oil revenue for the purpose of reconstituting its armed forces and military capabilities,” Treasury ‌Secretary ⁠Scott Bessent said in a release.

President Donald Trump has yet to approve the deal in the war the U.S. and Israel launched on February 28. The conflict has roiled global ⁠markets by closing the vital strait off Iran and Oman, through which 20% of the world’s oil and gas normally flowed.

The ⁠U.S. also imposed sanctions on more than 15 entities including Worth Seen Energy Limited in Hong Kong, ⁠Symphony Shipping and Maritime Management Inc in Dubai, and Mehdiyev Trading Co, also in Hong Kong.

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