U.S. Turns to Iranian Boats to Help Control Oil Prices Amid War

Treasury Department temporarily exempts Iranian-linked ships from sanctions to transport and sell Russian oil

Mar. 17, 2026 at 4:00am

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To help control spiking oil prices during the war in the Middle East, the United States is turning to a network of tankers with ties to the Iranian military. The Treasury Department has temporarily exempted Iranian-linked vessels from sanctions, allowing them to transport and sell Russian oil on the open market. This move is a sign of how dire the energy crisis has become as the war has effectively halted oil transport from the Persian Gulf region.

Why it matters

The U.S. and its allies have long used sanctions to punish Russia and Iran economically, as both countries depend heavily on oil exports. However, the current energy crisis caused by the war has forced the U.S. to make an exception and work with Iranian-linked ships, which it has previously sanctioned, in order to increase oil supply and control prices.

The details

The Treasury Department's temporary exemption applies to ships and companies connected to Iran's regime that have been operating as part of a 'ghost fleet', illicitly transporting goods and energy for Russia, Venezuela and others. One of the exempt ships is the Myra, which the Trump administration sanctioned in 2022 for its role in Iran's 'vast shipping empire' that sold oil illicitly. The exemption covers not just the ships, but also the traders, brokers and insurers involved in each transaction, all of whom could profit from the newly exempted sale of Russian crude.

  • On Thursday, the Treasury Department announced the temporary easing of sanctions on Iranian-linked ships carrying Russian oil.
  • In July 2022, the Trump administration imposed sanctions on the tanker Myra for its role in Iran's illicit oil shipping network.
  • On March 6, 2026, the Justice Department filed civil forfeiture complaints seeking to seize over $15 million in funds tied to the Shamkhani family's shipping empire.

The players

Treasury Department

The U.S. government agency that administers and enforces economic and trade sanctions.

Myra

An Iranian-linked tanker that was sanctioned by the Trump administration in 2022 for its role in Iran's illicit oil shipping network.

Mohammad Hossein Shamkhani

The head of the Shamkhani shipping network, which was the target of a recent Justice Department civil forfeiture action.

Islamic Revolutionary Guards Corps (IRGC)

A designated terrorist organization that the Shamkhani family's shipping empire was accused of providing influence and funding to.

Scott Bessent

The U.S. Treasury Secretary who announced the temporary lifting of sanctions on Russian oil already at sea.

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What they’re saying

“Anything that destigmatizes this fleet is a big win for Russia and Iran.”

— Robin Brooks, Senior Fellow, Brookings Institution (The New York Times)

“The Shamkhani family's shipping empire showed how powerful Iranian actors 'accrue massive wealth and fund the regime's dangerous behavior.'”

— Scott Bessent, U.S. Treasury Secretary (The New York Times)

What’s next

The judge in the case against Mohammad Hossein Shamkhani will decide on Tuesday whether to allow him to be released on bail.

The takeaway

This temporary exemption for Iranian-linked ships highlights the dire energy situation caused by the war, forcing the U.S. to work with entities it has previously sanctioned in order to try to control skyrocketing oil prices. It also raises concerns about the broader implications of destigmatizing these illicit shipping networks.