US opens new route to dispose of sanctioned ships as African-flagged tankers feature in Iran’s shadow fleet

According to TradeWinds, which reported the development on November 10, the authorisation was issued by the US Treasury’s Office of Foreign Assets Control (OFAC), making Best Oasis the second company to receive such approval after rival GMS.

The development comes as Washington intensifies efforts to disrupt Iran’s oil-export networks, with several vessels carrying African flags identified among ships accused of transporting Iranian petroleum products and crude oil.

The authorisation allows Best Oasis to pursue negotiations involving sanctioned vessels.

The sanctioned ships could be sold for recycling or dismantling under US oversight, with transactions requiring approval from the US Treasury’s OFAC to ensure sanctioned owners do not benefit.

The African connection is reflected in US Treasury sanctions records, which identify the Botswana-flagged SIFRA and Cameroon-flagged G SILVER over their alleged involvement in transporting Iranian petroleum products. However, the countries concerned have rejected any association with the vessels, saying their flags were used fraudulently.

After the US military identified the tanker M/T Lexie as Botswana-flagged during an operation targeting Iranian oil shipments in the Persian Gulf in June, the government denied registering or authorising the vessel, saying Botswana does not operate a maritime vessel registry.

Two other vessels, VOYAGE ELITE and TELA, were identified as Gambia-flagged tankers involved in Iranian oil shipments. US authorities linked VOYAGE ELITE to the transportation of Iranian crude to China, while TELA was also accused of carrying Iranian crude.

Other African countries have also reported cases of fraudulent flag use. The Comoros has recorded 83 falsely flagged vessels, while Guinea, Madagascar and Mali have also appeared among countries whose registries were allegedly misused.

Madagascar’s maritime authorities have warned that some vessels were operating internationally under its flag without valid authorisation.

For Washington, the challenge extends beyond sanctioning vessels and their operators. Removing them from service requires a controlled disposal process that prevents sanctioned owners from benefiting from the transactions or their proceeds.