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US Treasury Targets Iran Military Oil Revenue; Extends Lukoil License

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The US Department of the Treasury's Office of Foreign Assets Control on Thursday imposed additional sanctions on oil sales tied to Iran's military, alleging that Tehran was using illicit crude revenue to rebuild its armed forces.

Treasury said the activity posed "continued threats" to the US and its regional partners.

"Iran's military generates revenue through Iranian crude oil sales via an array of front companies to help fund its reconstitution and threaten its neighbors," according to the statement.

Treasury Secretary Scott Bessent said the department would continue increasing pressure on Iranian crude revenue streams.

"The Treasury Department will continue to increase pressure on Iranian oil sales to deprive the Iranian regime and its military of the financial resources it needs to threaten US allies and partners in the Middle East," Bessent said.

He added that the US would not allow Iran "to increase its oil revenue for the purpose of reconstituting its armed forces and military capabilities."

Thursday's action was taken under Executive Order 13224, as amended, which targets terrorists and those providing support to terrorism.

Treasury's sanctions campaign targeting Iranian oil sales is part of the broader Economic Fury campaign and the National Security Presidential Memorandum 2, which reinstated economic pressure on Iran.

Separately, the US State Department's Rewards for Justice program said it would offer up to $15 million for information leading to the disruption of the financial mechanisms of Iran's Islamic Revolutionary Guard Corps and its affiliated branches.

In a separate action, the Treasury Department's Office of Foreign Assets Control extended a general license authorizing certain transactions involving Russia's Lukoil International and related entities through June 27, 2026, according to a notice published Thursday.

The updated General License 131F permits activities related to the negotiation of contingent contracts for the potential sale or transfer of the company and its subsidiaries, as well as transactions ordinarily incident and necessary to the maintenance or wind-down of operations.

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