The $2.8 Billion Hole in U.S. Sanctions on Iran – The New York Times
Tugboats maneuvered the tanker Eternal Fortune into a berth at the Kharg Island oil terminal on Oct. 28, 2023, while it was falsely broadcasting its location as in the Gulf of Oman. The vessel was insured by an American company.
Maxar Technologies
Tug boats maneuvered the tanker Eternal Fortune into a berth at the Kharg Island oil terminal on Oct. 28, 2023 while it was falsely broadcasting its location as in the Gulf of Oman. The vessel was insured by an American company.
Maxar Technologies
For months, as Iran-backed groups attacked U.S. forces and allies in the Middle East, the Biden administration hailed its efforts to restrict Irans oil revenue and the countrys ability to fund proxy militias. The Treasury secretary told Congress that her teams were doing everything that they possibly can to crack down on illegal shipments, and a senior White House adviser said that extreme sanctions had effectively stalled Irans energy sector.
But the sanctions failed to stop oil worth billions of dollars from leaving Iran over the past year, a New York Times investigation has found, revealing a significant gap in U.S. oversight.
The oil was transported aboard 27 tankers, using liability insurance obtained from an American company. That meant that the U.S. authorities could have disrupted the oils transport by advising the insurer, the New York-based American Club, to revoke the coverage, which is often a requirement for tankers to do business.
Instead, the 27 tankers were able to transport shipments across at least 59 trips since 2023, The Times found, with half the vessels carrying oil on multiple journeys.
The Treasury Department did not respond to a question about whether it was aware the ships had transported Iranian oil while insured by the American Club.
The tankers exhibited warning signs that industry experts, and the Treasury, have said collectively warrant greater scrutiny. Among other red flags, the ships are: owned by shell companies, older than average vessels and use a tactic called spoofing to hide their true locations.
Satellite imagery, much of it freely accessible to the public, captured the tankers during their oil transports.
fortune galaxy
Feb. 25, 2023
galaxy star
Mar. 10, 2023
cathay kirin
Mar. 12, 2023
duplic dynamic
Jun. 11, 2023
fortune galaxy
Jun. 24, 2023
fortune galaxy
Jul. 13, 2023
cathay kirin
Aug. 8, 2023
fortune galaxy
Aug. 18, 2023
fortune galaxy
Sept. 4, 2023
galaxy star
Sept. 19, 2023
fortune galaxy
Oct. 4, 2023
eternal fortune
Oct. 29, 2023
eternal success
Nov. 23, 2023
fortune galaxy
Nov. 24, 2023
Sources: Copernicus Sentinel-2, Planet Labs, Maxar Technologies, TankerTrackers.com, Spire Global, MarineTraffic
Satellite images on display represent one of several methods that The Times relied on to locate each tanker.
It is unclear who the U.S. government considers primarily responsible for identifying suspicious tankers. The Treasury is tasked with administering sanctions by investigating and blacklisting individuals or companies participating in illicit activities. But it places some of the burden on insurers to monitor for suspicious behavior through the regular release of advisories and alerts.
To identify the shipments of Iranian oil, The Times built a database of thousands of tankers and their whereabouts using maritime data and satellite imagery. Vessels whose voyage paths showed irregularities were cross-referenced with information provided by Samir Madani, co-founder of TankerTrackers.com, a company that monitors oil shipping.
SynMax and Pole Star, two other companies that monitor shipping, provided additional data.
In late-January, several weeks after the American Club was mentioned at a Congressional hearing titled "Restricting Rogue-State Revenue", coverage for many of the tankers identified by The Times abruptly ended. The company said that the stoppages were the result of its own internal investigations. Five of the vessels are still insured by the company, according to data listed on its website; the American Club said it is still investigating those ships.
The Timess findings come as the Biden administration is under increasing scrutiny from lawmakers and advocacy groups for its handling of sanctions on Iran.
It is very concerning, said Senator Maggie Hassan, a Democrat of New Hampshire, who has filed a bill to strengthen the enforcement of sanctions on deceptive ships.
The United States must use every tool at its disposal to identify, stop and sanction these bad actors, she said. These new revelations highlight the stakes.
In response to Times findings, a Treasury spokesperson said in a statement: Treasury remains focused on targeting Irans sources of illicit funding, including exposing evasion networks and disrupting billions of dollars in revenue.
The spokesperson added that this month the department had taken action against what it called a Hong Kong-based front company, which U.S. officials said had funded Irans Revolutionary Guards Corps.
Kharg Island, pictured in 2017, is one of Irans main oil terminals where many of the American Club-insured tankers loaded oil.
Fatemeh Bahrami/Anadolu Agency via Getty Images
The insurance provided by companies like the American Club is a key factor in the tankers ability to move oil; industry insiders call it a vessels ticket to trade. Most major ports insist that ships have proof of liability coverage, among other requirements, before they can enter and do business.
The American Club is one of only 12 major insurers of its kind, and the only one based in the United States. Specifically, the company says, its policies cover third parties affected during an accident caused by a ships negligence.
Because of these insurers importance to shipping, they have been consulted by the U.S. government when developing sanctions on Russian oil sales.
Daniel Tadros, the American Clubs chief operating officer, said his company has one of the most stringent compliance programs in the industry. But he said that the companys six-person compliance team was overwhelmed each month with hundreds of inquiries about potentially suspicious vessels, and that investigating even a single case takes time.
It's impossible for us to know on a daily basis exactly what every ship is doing, where it's going, what it's carrying, who its owners are, Mr. Tadros said. I would like to think that governments have a lot more capability, manpower, resources to follow that.
He added that the U.S. government had only recently suggested the use of satellite imagery for maritime-related businesses looking for sanctions evasion. Satellite imagery has been used as a ship-tracking tool in the industry for at least a decade.
Shipowners willing to skirt trade restrictions can make more than their normal commissions. But to maintain business connections with the West, including with insurers, they may resort to using deceptive tactics.
Since the start of 2023, the 27 vessels moved roughly 59 million barrels of oil, according to a Times analysis. The calculation is based on a tankers depth in the water before and after the oil was loaded, a measurement used by industry analysts.
There is no official source detailing the amount of oil that leaves Iran. According to estimates from Kpler, a company that monitors global trade, the oil carried by the tankers would amount to roughly 9 percent of Iran's oil exports over that period.
Sources: Copernicus Sentinel-2, Planet Labs, Maxar Technologies, Spire Global, MarineTraffic, TankerTrackers.com
Note: Pickups include those made at Iranian ports as well as via transfer at sea from other ships to American Club-insured ships. The map does not represent all oil pickups The Times found.
Many of the tankers ultimately ended up in China, which has tripled its imports of Iranian oil over the past two years.
Some of the shipments continued into the fall, as one Iran-backed group, Hamas, led the Oct. 7 assault on Israel, and other Iran-aligned militants, like the Houthis in Yemen, launched attacks on shipping routes and U.S. forces in the region.
By then, the tankers had transported at least $2.8 billion in crude oil, based on the lowest reported prices of Iranian oil in 2023.
That dollar amount could be higher. The Times found eleven more tankers, anchored off Iranian oil ports last year, that used deceptive practices and carried American Club insurance. Although there is little other reason for the ships to hide their presence, The Times could not verify whether they loaded oil.
Where contact information was available, The Times sought comment from more than 40 entities linked to the tankers involved in moving Iranian oil. None replied.
Some experts expressed doubt that the American Club was doing everything it could to identify deceptive ships.
Responsible, reputable insurers waste no time in confronting their clients or club members, Mr. Madani of TankerTrackers.com said.
David Tannenbaum, a former sanctions compliance officer for the Treasury Department who now works as a consultant for a compliance advisory company, said his research showed that the American Club covers a large proportion of deceptive vessels when compared with similar insurers.
While weve seen spoofers infiltrate almost all of the major protection and indemnity clubs, they are definitely a leader, he said.
Last week, Bloomberg reported that the American Club had insured more ships suspected of violating sanctions than other comparable insurers, according to data from United Against Nuclear Iran, a privately funded group advocating stronger sanctions on Iran.
(Many of the vessels noted by the group were also identified by The Times. Mr. Tadros, the American Club executive, said his company had removed insurance for the claims it could corroborate. He said in some cases United Against Nuclear Iran presented flawed evidence, which The Times also concluded for one of the accused tankers.)
The Times was able to use satellite imagery and information available to the shipping industry, such as signals that ships transmit to report their purported locations, to identify the tankers.
The tankers deception mainly involved a practice known as spoofing in which vessels broadcast fake route information to hide their true locations. Last August, for example, the tanker Glory broadcast that it was off the coast of the United Arab Emirates when it was really loading oil in Asaluyeh, Iran.
Sources: Copernicus Sentinel-2, Spire Global, MarineTraffic, TankerTrackers.com, SynMax
Note: Locations relative to each other are approximate in time.
In some cases, tankers also conducted ship-to-ship transfers, exchanging goods with another vessel at sea. The practice is common, but can be used to conceal a cargos origin, especially when used with spoofing. Ship-to-ship transfers near Iran frequently occurred just off the coast, such as when the tanker Shalimar took on oil in October. For each transfer, The Times traced the cargo back to Iranian oil terminals.
Sources: Copernicus Sentinel-2, Spire Global, MarineTraffic, TankerTrackers.com
Note: Locations relative to each other are approximate in time.
The Times also found some tanker crews altering the physical appearance of their ships. On one spoofing vessel, a red tarp was spread over its green deck in an apparent effort to disguise itself from satellites.
A month after leaving China, the American Club-insured tanker Irises reaches the Gulf of Oman for at least the fourth time in 2023.
Red tarps appear partially covering the deck of the Irises. The ship begins spoofing its location as it approaches the Persian Gulf.
Elsewhere, a ship owned by the National Iranian Tanker Company loads oil from Kharg Island.
The two ships meet in the Persian Gulf, with more red tarp visible on the Irises deck. The Iranian ship transfers oil to the Irises.
Sources: Planet Labs, Copernicus Sentinel-2, Spire Global, MarineTraffic, TankerTrackers.com
Even though the tankers used deceptive tactics, their spoofing had identifiable patterns. Many pretended to anchor off Oman or in the Persian Gulf for days, while satellite imagery showed they were not there. Some ships even broadcasted signals showing them on land and moving at high speeds, a physical impossibility.
Several of the tankers had a history of picking up oil in other countries under U.S. sanctions. Before they moved the Iranian oil, a Times analysis found, eight of the tankers spoofed their locations while carrying Venezuelan oil that was subject to sanctions. Its unclear if they were insured by the American Club at the time.
One of the tankers did carry American Club insurance when The Times found it likely evading Russian sanctions last year.
The American Clubs role in insuring the 27 tankers could put the company in potential violation of sanctions, industry experts said.
Mr. Tadros disagreed. He said the company includes a clause in its contracts, based on Treasury guidance, that nullifies coverage if a ship violates sanctions. He argued this protects the insurer from being complicit in potential violations.
The American Club takes its obligations seriously and works diligently to comply with sanctions regulations, Mr. Tadros said.
The Treasury office has publicly enforced sanctions on the American Club only once in the past 20 years. In 2013, the office announced that it found the insurer had processed dozens of claims for ships that violated sanctions on Cuba, Sudan and Iran. Treasury officials calculated the penalty for the apparent violations totaled more than $1.7 million.
Ultimately, the office said the American Club did not appear to have been willful or reckless and the case was settled. The company agreed to pay a reduced fine of $348,000.
Sources and Methodology
Times reporters built a database of nearly 20,000 tankers and their owners, operators, managers and insurers by combining information from Equasis; the International Maritime Organization; and Pole Star, a maritime intelligence company. Times reporters cross-referenced this information with the websites of the major insurance companies, which all maintain freely accessible databases of ships they insure.
The publicly available location data of the ships, known as their automatic identification system or AIS, was obtained through MarineTraffic and Spire Global. The platforms show live ship locations around the world and keep records of past voyages.
To detect any irregularities in the AIS paths that may be signs of deceptive practices, The Times used data on spoofing ships provided by TankersTrackers.com, as well as from SynMax, a satellite data analytics company, and Spire Global; and information collected through The Timess own reporting. Reporters then crossed-referenced the sources with satellite imagery.
The satellite imagery used to search for the ships reported and actual locations came from Planet Labs, Maxar Technologies and the European Space Agencys Copernicus Sentinel-2 satellite, which is publicly available. A large share of the spoofing tankers had already been spotted in Iranian waters by TankerTrackers.com.
Go here to read the rest:
The $2.8 Billion Hole in U.S. Sanctions on Iran - The New York Times
- Trump threatens Greenland and Iran at meeting with oil bosses on Venezuela US politics live - The Guardian - January 9th, 2026 [January 9th, 2026]
- Khamenei says Iran wont back down amid mass protests and Trump threat - The Washington Post - January 9th, 2026 [January 9th, 2026]
- Is this time different in Iran? - vox.com - January 9th, 2026 [January 9th, 2026]
- Opinion | How Trump Makes Good on His Threat to Iran - The Wall Street Journal - January 9th, 2026 [January 9th, 2026]
- How Trump Could Help the People of Iran - The Atlantic - January 9th, 2026 [January 9th, 2026]
- Iran protests are the biggest in years to challenge the regime. Here's what to know. - cbsnews.com - January 9th, 2026 [January 9th, 2026]
- Grave Concern That State Massacre of Protesters is Underway in Iran Amid Internet Blackout - Center for Human Rights in Iran - January 9th, 2026 [January 9th, 2026]
- Growing protests in Iran do not necessarily herald a return to monarchy - The Guardian - January 9th, 2026 [January 9th, 2026]
- A timeline of how the protests in Iran unfolded and grew - AP News - January 9th, 2026 [January 9th, 2026]
- Internet and phones cut in Iran as protesters heed exiled prince's call for mass demonstration - AP News - January 9th, 2026 [January 9th, 2026]
- Iran protests latest: At least 62 killed as Ayatollah threatens harsher crackdown - The Independent - January 9th, 2026 [January 9th, 2026]
- At least 51 people killed during protests so far, rights group says | Iran International - - January 9th, 2026 [January 9th, 2026]
- Why Theres No Starlink Access During Nationwide Shutdown in Iran? - IranWire - January 9th, 2026 [January 9th, 2026]
- Why are there huge protests going on in Iran? - BBC - January 9th, 2026 [January 9th, 2026]
- Iran judiciary chief vows there will be 'decisive' punishment for protesters - abcnews.go.com - January 9th, 2026 [January 9th, 2026]
- What to know about the intensifying protests shaking Iran and putting pressure on its theocracy - PBS - January 9th, 2026 [January 9th, 2026]
- Iran protests: brutal crackdown as uprising gathers pace | The Latest - The Guardian - January 9th, 2026 [January 9th, 2026]
- Iran, Israel, & Immigration | Gregg Roman on The Saad Truth - Middle East Forum - January 9th, 2026 [January 9th, 2026]
- Amid protests, Khamenei digs in, says Iran wont back down to 'saboteurs,' Trump will be overthrown - The Times of Israel - January 9th, 2026 [January 9th, 2026]
- Iran: Deaths and injuries rise amid authorities renewed cycle of protest bloodshed - Amnesty International - January 9th, 2026 [January 9th, 2026]
- How US gave Iran, China, Russia reality check in Venezuela - The Jerusalem Post - January 9th, 2026 [January 9th, 2026]
- Protests Spread in Iran, and Crackdowns Escalate - The New York Times - January 8th, 2026 [January 8th, 2026]
- Iran ready to fight back if US or Israel attacks again, says foreign minister - The Times of Israel - January 8th, 2026 [January 8th, 2026]
- Iran threatens pre-emptive attack if it sees 'indication of threat' - Euronews.com - January 8th, 2026 [January 8th, 2026]
- Iran army chief threatens preemptive attack over 'rhetoric' targeting country after Trump's comments - AP News - January 8th, 2026 [January 8th, 2026]
- Iran is on the edge of revolution - New Statesman - January 8th, 2026 [January 8th, 2026]
- Iran army chief threatens preemptive attack on enemies after Trumps comments - The Independent - January 8th, 2026 [January 8th, 2026]
- What is Happening in Iran | Gregg Roman on Washington Watch - Middle East Forum - January 8th, 2026 [January 8th, 2026]
- Violent clashes reported as Iran protests spread to more areas - BBC - January 8th, 2026 [January 8th, 2026]
- Facing unrest, Iran is on edge as Trump threatens Tehran on heels of Venezuela operation - Los Angeles Times - January 8th, 2026 [January 8th, 2026]
- They are killing us: authorities use force against protesters in Kurdish regions of Iran - The Guardian - January 8th, 2026 [January 8th, 2026]
- 'This Big Truck Is Coming': Iran After The Maduro Kidnapping - FOREVER WARS by Spencer Ackerman - January 8th, 2026 [January 8th, 2026]
- Irans Uprising Expands with Strikes and Demonstrations in Tehran and Other Cities as Youths Clash with Suppressive Forces - National Council of... - January 8th, 2026 [January 8th, 2026]
- Iran says open to US talks but ready for war - The Jerusalem Post - January 8th, 2026 [January 8th, 2026]
- It's the economy: grim livelihoods explain Iranian anger | Iran International - - January 8th, 2026 [January 8th, 2026]
- Out from the margins: how Ilam became the heart of Iran protests - - January 8th, 2026 [January 8th, 2026]
- Iran Says Its Investigating Violence at Weekend Protests - The New York Times - January 8th, 2026 [January 8th, 2026]
- Activists say at least 36 killed amid Iran protests after Trump's warning of a possible U.S. intervention - CBS News - January 8th, 2026 [January 8th, 2026]
- Can Iran's plan for a $7 monthly cash handout calm the streets? | Iran International - - January 8th, 2026 [January 8th, 2026]
- Did a minister just reveal Israeli assets were operating in Iran? - www.israelhayom.com - January 8th, 2026 [January 8th, 2026]
- Could Iran launch preemptive strikes on Israel, US? - The Jerusalem Post - January 8th, 2026 [January 8th, 2026]
- Exiled prince, Kurdish parties call for protests and strikes on Thursday | Iran International - - January 8th, 2026 [January 8th, 2026]
- Iran executes another man accused of spying for Israel, as protests roil country - The Times of Israel - January 8th, 2026 [January 8th, 2026]
- Iranian protesters plead with Trump: 'Don't let them kill us' | Iran International - - January 8th, 2026 [January 8th, 2026]
- Iran's Army chief warns against hostile rhetoric, vows response to threats - AnewZ - January 8th, 2026 [January 8th, 2026]
- Iran accused of deploying Iraqi militias to crush protests at home - middle-east-online.com - January 8th, 2026 [January 8th, 2026]
- Iran warns it may act before an attack if it detects a threat - - January 6th, 2026 [January 6th, 2026]
- Iran protests: 29 killed, over 1,200 arrested by regime - The Jerusalem Post - January 6th, 2026 [January 6th, 2026]
- What Will Happen To Iran As Global And Regional Powers Eye Options? - Forbes - January 6th, 2026 [January 6th, 2026]
- Iran Protests, January 4, 2026 - Institute for the Study of War - January 6th, 2026 [January 6th, 2026]
- Israel hospitals exposed to Iran ballistic missile threat - The Jerusalem Post - January 6th, 2026 [January 6th, 2026]
- Iran has been shaken by a series of protests over the past 50 years. Heres a look at them - AP News - January 6th, 2026 [January 6th, 2026]
- Trumps abduction of Maduro escalates concerns over potential war with Iran - Al Jazeera - January 6th, 2026 [January 6th, 2026]
- What to know about the protests now shaking Iran as tensions remain high over its nuclear program - AP News - January 6th, 2026 [January 6th, 2026]
- Security forces clash with protesters in Iran's main market as at least 35 killed in demonstrations - Los Angeles Times - January 6th, 2026 [January 6th, 2026]
- Rights groups say at least 16 dead in Iran during week of protests - Reuters - January 6th, 2026 [January 6th, 2026]
- Iran protests spread to 222 locations as death toll hits 20 on eighth day | Iran International - - January 6th, 2026 [January 6th, 2026]
- What to Know About the Protests in Iran - The New York Times - January 6th, 2026 [January 6th, 2026]
- Netanyahu said to convey message via Putin that Israel doesnt intend to attack Iran - The Times of Israel - January 6th, 2026 [January 6th, 2026]
- Trump intervention warning over Iran protests 'reckless' says foreign minister - BBC - January 6th, 2026 [January 6th, 2026]
- Ayatollah Khamenei will flee Iran for Moscow if protests overwhelm security forces, says intelligence report - The Independent - January 6th, 2026 [January 6th, 2026]
- Trump and top Iranian officials exchange threats over protests roiling Iran - AP News - January 2nd, 2026 [January 2nd, 2026]
- What 'locked and loaded' signals in Trumps message backing Iran protests - - January 2nd, 2026 [January 2nd, 2026]
- Trump and top Iranian official exchange threats over protests in Iran - Al Jazeera - January 2nd, 2026 [January 2nd, 2026]
- Trump and top Iranian security official exchange threats over protests now roiling Iran - ABC News - January 2nd, 2026 [January 2nd, 2026]
- Iran: US troops legitimate targets after Trump threatens to intervene in protests - The Hill - January 2nd, 2026 [January 2nd, 2026]
- Trump says US will intervene if Iran starts killing protesters: Locked and loaded - Fox News - January 2nd, 2026 [January 2nd, 2026]
- Trump vows to rescue protesters amid Iran unrest: We are locked and loaded - The Hill - January 2nd, 2026 [January 2nd, 2026]
- US ready to intervene if Iran kills protesters, Trump warns | Iran International - - January 2nd, 2026 [January 2nd, 2026]
- How will the mass protests that are convulsing Iran unfold? - The Economist - January 2nd, 2026 [January 2nd, 2026]
- Trump threatens Iran saying military is locked and loaded and ready to go - The Independent - January 2nd, 2026 [January 2nd, 2026]
- Six killed in clashes between protesters and security forces in Iran - BBC - January 2nd, 2026 [January 2nd, 2026]
- Iran Protests Turn Deadly as Violence and Anger Spread - The New York Times - January 2nd, 2026 [January 2nd, 2026]
- Iran warns US intervention in protests a red line after threat from Trump - The Times of Israel - January 2nd, 2026 [January 2nd, 2026]
- Trump Warns Iran Against Shooting Protesters, Says U.S. Is Locked and Loaded - The Wall Street Journal - January 2nd, 2026 [January 2nd, 2026]
- Iran Protest Live: Anti-Khamenei chants at funerals, unrest spreads to 50 cities on 6th day - India Today - January 2nd, 2026 [January 2nd, 2026]
- Jafar Panahis Prison Sentence Appeal Sets Hearing Date in Iran - The Hollywood Reporter - January 2nd, 2026 [January 2nd, 2026]
- Netanyahu is pushing for another U.S. intervention in Iran. Will Trump take the bait? - Mondoweiss - January 2nd, 2026 [January 2nd, 2026]
- Iran protests draw swift crackdown as U.S. calls on Tehran to respect "rights of the Iranian people" - CBS News - January 2nd, 2026 [January 2nd, 2026]
- Several killed as Iran protests over rising cost of living spread - Al Jazeera - January 2nd, 2026 [January 2nd, 2026]