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US sanctions Iranian military front companies selling oil to China

May 13, 2025, 21:10 GMT+1Updated: 08:14 GMT+0
File photo of a tanker in Iran's South Pars Gas Field
File photo of a tanker in Iran's South Pars Gas Field

The United States on Tuesday introduced fresh sanctions against a shipping network it says has sent millions of barrels of Iranian oil to China, a day after Iran International reported on its activities citing confidential business documents.

The network facilitated "the shipment of millions of barrels of Iranian crude oil worth billions of dollars to China on behalf of Iran’s Armed Forces General Staff (AFGS) and its front company, Sepehr Energy Jahan Nama Pars (Sepehr Energy)," a statement by the State Department said.

Iran International reported that Sepehr Energy company worked on behalf of the Iranian military and spawned a network of shell companies to sell sanctioned Iranian oil to Asia and did business with a Netherlands-based firm that was aware of its government ties.

Business documents and emails obtained by Iran International revealed a layered network of shell companies used to mask the military links and channel the sanctioned oil through foreign intermediaries.

In a separate statement on Tuesday, the US Treasury Department said "nearly two dozen firms operating in multiple jurisdictions in virtually every aspect of Iran’s illicit international oil trade" were targeted in the latest designations.

One of the entities sanctioned by the US Treasury on Tuesday was Xin Rui Ji, a company cited in Iran International's reporting.

"The Iranian government allocates billions of dollars’ worth of oil annually to its armed forces to supplement their budget allocations, underwriting the development of ballistic missiles and unmanned aerial vehicles, as well as financing regional terrorist groups," the Treasury said.

The State Department also said that "the revenue from the sale of this oil funds the development of ballistic missiles and UAVs, nuclear proliferation, and Iran’s terrorist proxies, including the Houthis’ attacks on Red Sea Shipping, the US Navy, and Israel."

“Today’s action underscores our continued focus on intensifying pressure on every aspect of Iran’s oil trade, which the regime uses to fund its dangerous and destabilizing activities,” said Secretary of the Treasury Scott Bessent.

“The United States will continue targeting this primary source of revenue, so long as the regime continues its support for terrorism and proliferation of deadly weapons.”

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Trump's niceties on Iran talks may not last without clear results

May 13, 2025, 19:00 GMT+1
•
Ali Afshari

The fourth round of indirect negotiations between Tehran and Washington ended without a breakthrough but preserved a fragile diplomatic opening on the eve of President Donald Trump’s visit to Iran’s Arab neighbors.

Before traveling to Saudi Arabia on May 12, Trump reaffirmed his opposition to Iran acquiring nuclear weapons, while praising Iranian negotiators for being, in his words, very reasonable and very intelligent.

Despite pillorying Tehran at length in a speech in Saudi Arabia the next day, the comments suggested an openness to continued dialogue—even amid mounting pressure from within his own ranks.

Trump’s position reflects a carrot-and-stick strategy: applying sanctions while keeping the door open for a potential deal. Yet, internal divisions are growing.

Middle East envoy and chief negotiator Steven Witkoff told Breitbart last week that no level of uranium enrichment should take place in Iran—opposing the allowances made under the 2015 Joint Comprehensive Plan of Action (JCPOA).

Witkoff’s remarks echo those of hawkish Republicans who reject even limited enrichment under international monitoring. Witkoff once again aligned himself with that position, signaling that any new deal could be more restrictive than the 2015 deal.

In the same interview, however, Witkoff distanced himself from advocates of military action, accusing them of a “bias toward war.” He emphasized that Trump prioritizes diplomacy, arguing that critics underestimate the risks of armed confrontation.

The messaging—hardline on enrichment, moderate on military force—underscores the absence of a unified Republican policy.

Trump himself has sent conflicting signals. In an interview with Hugh Hewitt on 7 May, he reaffirmed his desire to end Iran’s uranium enrichment but also indicated a willingness to hear justification for maintaining some nuclear infrastructure.

Elusive positions

A week—and one more round of talks—later, we are none the wiser about the Trump administration’s red lines.

US vice president J.D. Vance has taken a more flexible position, suggesting a tightly monitored, limited centrifuge program could be acceptable. His stance diverges from that of US secretary of state Marco Rubio and Witkoff’s latest, betraying disagreement at the very top.

In Tehran, the message has been more consistent—in public at least. The right to enrich uranium is non-negotiable, foreign minister Abbas Araghchi posted on X on the eve of the fourth round of talks.

Enrichment, in reality, is what gives supreme leader Ali Khamenei the leverage he has always sought to face his western ‘enemies.’

Khamenei’s strategy, as far as can be surmised from his decisions in the last two decades, is to remain close to the nuclear threshold without crossing it, standing on the brink without falling into the abyss of war.

Despite this impasse, both sides agreed to extend the negotiations, signaling a desire to avoid blame for their collapse. Still, the fundamental disagreement over enrichment remains unresolved.

Witkoff has also called for the talks to address Iran’s regional conduct, particularly its support for armed groups like Hezbollah and the Houthis. He argues any deal should reduce the Islamic Republic’s hostile actions against the US and Israel.

These positions are yet to be formalized, but the rulers in Tehran appear to have used whatever influence they have with the Houthis to calm the Red Sea and ease pressure on Iran’s negotiators.

But the link between nuclear diplomacy and regional security remains tenuous.

Fraught issue

Historically, the US strategy on Iran’s nuclear program has fluctuated. The Bush administration failed to enforce a zero-enrichment model; the Obama administration accepted a 3.67% cap to delay Iran’s breakout capacity. Trump’s second-term ambitions appear to aim higher—but face the same practical limits.

UN nuclear chief Rafael Grossi asserted recently that completely eliminating Iran’s program may no longer be achievable.

Also significant is public opinion in the US. In a recent poll by the University of Maryland, more than two-thirds of respondents said they preferred a negotiated deal to curb Iran’s nuclear activities, with only 14% backing military action.

On this point at least, and for now, President Trump appears to be reflecting the popular will, letting diplomacy run its course while pursuing his maximum pressure campaign of sanctions, hoping to force Iranians to blink first.

Unclear to nearly all watching the talks—and perhaps even to those involved in it—is how far and how long he is willing to go without visible results.

Trump castigates Iran in lengthy speech before Saudi leadership

May 13, 2025, 17:40 GMT+1

Speaking before Crown Prince Mohammed bin Salman and other top Saudi and US officials, President Donald Trump spent much of a lengthy speech on Tuesday criticizing Iran while urging a deal over its disputed nuclear program.

Tehran as obstacle to regional peace

"The only thing still standing between this region and its unbelievable potential was a small group of rogue actors and violent thugs seeking constantly to drag the Middle East backward and into havoc, mayhem and indeed, into war. Unfortunately, instead of confronting these destructive forces, the last US administration chose to enrich them and empower them and give them billions and billions of dollars.

"Our task is to unify against the few agents of chaos and terror that are left and that are holding hostage the dreams of millions and millions of great people.

"The biggest and most destructive of these forces is the regime in Iran, which has caused unthinkable suffering in Syria, Lebanon, Gaza, Iraq, Yemen and beyond. There could be no sharper contrast with the path you have pursued on the Arabian Peninsula than the disaster unfolding right across in the Gulf in Iran."

A Persian Gulf of contrasts

"While you have been constructing the world's tallest skyscrapers in Jeddah and Dubai, Tehran's 1979 landmarks are collapsing into rubble and they had it going for a little while under a much different system but those buildings are largely falling apart.

"Iran's decades of neglect and mismanagement have left the country plagued by rolling blackouts lasting for hours a day ... While your skill has turned dry deserts into fertile farmland, Iran's leaders have managed to turn green farmland into dry deserts as their corrupt water mafia ... causes droughts and empty river beds. They get rich."

Syria and Lebanon

"Countless lives were lost in the Iranian effort to maintain a crumbling regime in Syria. Look at what happened with Syria and Lebanon, their Hezbollah proxies have pillaged the hopes of a nation whose capital Beirut was once called the Paris of the Middle East.

"Can you imagine all of this misery and so much more was entirely avoidable?

"If only the Iranian regime had focused on building their nation up instead of tearing the region down.

"In Syria, which has seen so much misery and death, there is a new government that will hopefully succeed in stabilizing the country and keeping peace. That's what we want to see in Syria, they've had their share of travesty, war killing many years.

"I will be ordering the cessation of sanctions against Syria in order to give them a chance."

Enmity or peace with Iran

"In the case of Iran, I have never believed in having permanent enemies. I am different than a lot of people think. I don't like permanent enemies ... I want to make a deal with Iran.

"But if Iran's leadership rejects this olive branch and continues to attack their neighbors, then we will have no choice but to inflict massive maximum pressure drive Iranian oil exports to zero like I did before."

"(The US will) take all action required to stop the regime from ever having a nuclear weapon."

Iran’s president says Supreme Leader sets terms for US talks

May 13, 2025, 13:40 GMT+1

Iranian President Masoud Pezeshkian said any indirect negotiations with the United States will proceed in full coordination with Supreme Leader Ali Khamenei and reaffirmed that Iran will not retreat from its core principles.

“These negotiations will be fully aligned with the Supreme Leader’s guidance, which will light our path,” Pezeshkian said during a meeting with a group of lawmakers. “We have not and will not tie the people’s livelihood to the outcome of the talks.”

Pezeshkian said that while Iran seeks dialogue without escalating tensions, it would not compromise on what he called national values. “We will not retreat from our principles under any circumstances,” he added. “At the same time, we are not seeking tension.”

Earlier in the day, Iran’s deputy foreign minister said the country is open to accepting temporary restrictions on uranium enrichment, though no detailed agreement has been reached.

Majid Takht-Ravanchi, speaking after the fourth round of indirect talks with the United States in Oman, said negotiations have yet to address the specifics of enrichment levels.

The talks, described by both sides as difficult but constructive, mark the highest-level contact between Tehran and Washington since the US withdrew from the 2015 nuclear deal in 2018 under former Trump administration.

Iran has since accelerated its enrichment to 60% purity—well above the deal’s 3.67% cap but below weapons-grade, according to the UN nuclear watchdog.

While US officials have called for a full dismantlement of Iran’s enrichment capabilities, Tehran insists the right to enrich is non-negotiable.

Iran’s atomic energy chief, Mohammad Eslami,said on Tuesday that the nuclear program remains a pillar of national strength and is not subject to bargaining.

Western powers accuse Iran of seeking nuclear weapons—an allegation Tehran denies. Despite diplomatic engagement, the US continues to expand sanctions targeting Iran’s nuclear and energy sectors.

Iran expands African footprint as it seals security deal with Ethiopia

May 13, 2025, 12:06 GMT+1

Ethiopia and Iran signed a memorandum of understanding in early May to enhance cooperation between their national police forces on intelligence sharing, cross-border crime, and security training—an effort analysts say bolsters Tehran’s growing influence in the Horn of Africa.

The agreement signals Iran’s intent to deepen political and security ties with African states through its military and intelligence apparatus, according to Eric Lob, associate professor of politics and international relations at Florida International University, writing for The Conversation.

Iran has previously supplied surveillance and combat drones to Ethiopia, aiding government forces during the 2020–2022 Tigray conflict.

The US State Department reported last year that Iran had breached a UN Security Council resolution by sending armed drones to Ethiopia in the summer of 2021.

Similar equipment has reportedly been provided to the Sudanese army in its fight against the Rapid Support Forces, underlining Tehran’s broader regional strategy.

For Addis Ababa, the pact comes amid rising domestic insecurity and follows recent talks with Iran’s Persian Gulf rival, the United Arab Emirates.

Ethiopia is currently facing armed unrest from ethnic militias, including factions of the Tigray People’s Liberation Front and the Amhara Fano militia. It is also contending with economic challenges and renewed tensions with neighboring Eritrea.

The cooperation deal marks a continuation of a historically complex relationship. Ethiopia was the first sub-Saharan country to establish ties with Iran in the 1960s and resisted pressure to sever them in 2016 after Saudi Arabia and the UAE severed ties with Tehran.

“The agreement highlights Ethiopia’s pragmatic foreign policy, seeking support from both Iran and the UAE — rivals often on opposing sides of regional conflicts like those in Yemen and Sudan,” Lob wrote.

Iran’s nuclear chief says atomic industry is non-negotiable

May 13, 2025, 10:37 GMT+1

Iran’s nuclear chief said that the country’s nuclear industry will not be subject to any form of negotiation or compromise, describing it as a pillar of national power.

“The nuclear industry is a point of wealth and strength for the Iranian nation and is not subject to bargaining or negotiation,” Mohammad Eslami said speaking at an event in Karaj, near Tehran, on Tuesday.

“We have paid a heavy price to achieve nuclear knowledge, and nuclear technology is the key to progress in all fields of science and engineering,” he added.

Eslami’s remarks come as Iran and the United States concluded a fourth round of indirect nuclear negotiations in Oman on Sunday.

US President Donald Trump has said that the goal of the negotiations is to achieve "full dismantlement" of Tehran's nuclear program.

Tensions have mounted in recent days following comments by US envoy Steven Witkoff, who told Breitbart News last week that Washington's red line remains “no enrichment,” effectively calling for the dismantling of Iran’s nuclear infrastructure in Natanz, Fordow, and Isfahan.

Earlier on Tuesday, a senior Iranian lawmaker said Tehran will not give up uranium enrichment under any potential agreement with the United States, stressing that enrichment levels of up to 20% — or at least 5% — will be maintained on Iranian soil.

Ahmad Bakhshayesh Ardestani, a member of the Iranian parliament’s National Security and Foreign Policy Committee, told local media that the outlook for ongoing negotiations with Washington is positive, but insisted Iran will not concede to US demands.

“America ultimately has to accept our conditions,” he said.

Iran’s Deputy Foreign Minister Majid Takht-Ravanchi on Tuesday said that no specific details have been agreed regarding possible limits on uranium enrichment, after the latest round of talks in Muscat.

Iran has accelerated its enrichment activities since 2019, exceeding limits set under the 2015 nuclear deal, which the US exited unilaterally in 2018.

The UN nuclear watchdog has confirmed Iran’s enrichment of uranium to levels approaching weapons-grade, a move Tehran says is reversible if sanctions are lifted and credible guarantees are provided.

Iranian Foreign Minister Abbas Araghchi on Sunday said that Iran may consider temporary limits on enrichment “in terms of scope, level, and quantity” as a confidence-building measure, but also emphasized that the principle of enrichment itself is non-negotiable.

Amid the standoff, some Iranian commentators are reviving a long-standing proposal to break the impasse by forming a regional nuclear consortium that would include Iran, Arab states and the United States.

In February, the UN nuclear watchdog found that Iran's stockpile of near-weapons-grade uranium had risen to levels that, in principle, could be further enriched to produce enough material for six nuclear bombs.