Middle East — 2026-10-23

Treasury Sanctions Panama and Greece Law Firm and Shadow Fleet Vessels Under Operation Economic Outcast Targeting Iran Revenue

BLUFTreasury's expansion of targeting to lawyers, registrars, and port agents under Operation Economic Outcast will very likely yield at least one additional round of Iran-related shipping or oil designations by mid-November.

The Treasury Department sanctioned the Panama- and Greece-based law firm Karnakis and Karnakis on October 21 under Executive Order 13902, along with five associated individuals, for registering shell companies that own vessels carrying Iranian steel, petroleum and petrochemicals 12. Treasury also designated Roxette Maritime Shipping and Trading S.A., which manages seven Panama-flagged cargo vessels now identified as blocked property, and shipping agents Amigoz Singapore and Whales Shipping Line of Dubai, whose two support vessels were also blocked 1. The State Department said the firm's shell companies fronted networks selling Iranian oil for the IRGC-Qods Force and the Houthis 3. Treasury said FinCEN issued its first administrative subpoena under 31 U.S.C. § 5318(k) in an investigation of a Greek bank's possible Iran ties 1. Streamline Feed counted nine vessels, a figure above the 11 total Treasury lists, and Treasury's release does not give a combined vessel count 14.

Analysis
Treasury has shifted from vessels and owners to the legal and maritime service layer that builds ownership structures, and the FinCEN subpoena of a Greek bank is the first use of Section 5318(k) authority in this campaign. Moderate confidence rests on the steady pace of Operation Economic Outcast actions since August 24 and Treasury's stated intent to accelerate, though no list of upcoming targets is confirmed. Sourcing is thin: Treasury and State releases give primary confirmation, while Eurasia Review and Streamline Feed largely converge on one origin. OFAC will very likely announce at least one additional round of Iran-related designations against oil or shipping networks between October 24 and November 13. A bank designation or correspondent-account restriction could follow, though no timeline is public. The action may instead be mainly signaling to compliance firms and European partners, with limited effect on Iranian export volumes because replacement shells and agents can be registered quickly elsewhere. If designations arrive by mid-November, insurers, flag registries and banks in Greece, Panama, Singapore and the UAE must tighten agent and shell-client screening. If none arrive, they can reasonably hold off on costly de-risking.

4 sources

Operation Economic Outcast Targets Iran's Shadow Fleet Networks - U.S. Department of the Treasury
Operation Economic Outcast Targets Irans Shadow Fleet Networks - Eurasia Review
Unmasking Service Providers Facilitating Iran's Shadow Fleet Operations - U.S. Department of State
US sanctions target legal enablers of Iran's shadow fleet - Streamline Feed