Greek Shipping Company Admits to Illegally Transporting Iranian Oil and Agrees to Pay $2.4 Million Penalty

A Greek shipping company has pleaded guilty to smuggling sanctioned Iranian crude oil and agreed to pay a $2.4 million fine, according to newly unsealed U.S. court documents. The case against Empire Navigation, which faces three years of probation under the plea agreement, marks the first public acknowledgement by U.S. prosecutors that America seized some 1 million barrels of oil from the tanker Suez Rajan. This case sheds light on the covert world of Iranian crude oil smuggling in the face of Western sanctions.

The U.S. and its allies have been seizing Iranian oil cargoes since 2019, leading to a series of attacks in the Mideast attributed to the Islamic Republic, as well as ship seizures by Iranian military and paramilitary forces that threaten global shipping through the Strait of Hormuz. Attention was drawn to the Suez Rajan when it was suspected of carrying oil from Iran’s Khargh Island, its main oil distribution terminal in the Persian Gulf. The ship sat in the South China Sea before sailing for the Texas coast without explanation.

The newly unsealed court documents reveal that the Suez Rajan attempted to mask its loading of Iranian crude oil from one tanker by claiming the oil came from another. The U.S. government ultimately seized the oil. A lawyer for Empire Navigation pleaded guilty in April to violating the sanctions on Iran.

Iran’s oil smuggling revenue supports the Quds Force, the expeditionary unit of the Revolutionary Guard that operates across the Mideast. The trade involves hundreds of vessels that try to mask their movements and hide their ownership through foreign shell companies. The Suez Rajan case was unique because it was owned by the Los Angeles-based private equity firm Oaktree Capital Management. The U.S. Navy has increased its presence in the Mideast in response to the ongoing tensions.

Mark Wallace, former U.S. ambassador to the United Nations and head of United Against Nuclear Iran, praised Empire Navigation for agreeing to the plea and described Iran’s oil smuggling as a “mob-like” operation. The U.S. has updated its warning to shippers traveling through the Mideast, stating that commercial vessels continue to be illegally boarded and detained or seized by Iranian forces.

Despite American sanctions, Iranian oil exports have remained above 1 million barrels a day, with China believed to be a major buyer. Wallace emphasized the need for a serious policy review on why it took so long to address the issue of Iranian oil smuggling.