US Allows Sale of Four Iran-Sanctioned Ships, Opening Possible Exit Route for Shadow Fleet

The US government has authorized the sale of four ships sanctioned over Iran-linked activity, a move that is drawing attention as a possible shift in how authorities deal with vessels in the so-called shadow fleet.

Walter Bloomberg reported on May 21 that the US issued a license allowing a major shipbreaking company to buy four sanctioned vessels that had transported Iran-linked cargo.

The vessels are reportedly tied to a network connected to Iran.

They are expected to be dismantled and recycled.

Market participants say the move could provide a legal exit route for part of the shadow fleet used to evade sanctions on Iran and Russia.

The size of the Iran- and Russia-linked shadow fleet has grown rapidly since Western sanctions were tightened.

US authorities said the case-by-case licensing approach used in this instance could be applied more broadly in the future.

The report said officials also expect the measure to reduce the number of high-risk vessels in the global maritime shipping market.

Markets are watching how any shift in US sanctions enforcement could affect global crude shipping and supply chains.