US weighs lifting sanctions on Iran's 'shadow fleet' to address surging costs

The US is considering lifting sanctions on “shadow fleet” tankers tied to Russia and Iran to address soaring diesel prices ahead of midterm elections, according to multiple reports and a senior US official. US Energy Secretary Chris Wright said in a video address to an energy forum in Riyadh this week that the Trump administration was discussing easing sanctions on shadow fleet vessels to address record freight rates that have driven up costs of shipping American energy abroad, Energy Aspects, a research group, said. The Financial Times reported on Thursday that the US could allow the sale of blacklisted vessels to non-sanctioned operators and lift sanctions, allowing them to operate without restrictions. Reuters reported the US could allow “legal oil" to flow on previously sanctioned vessels, effectively allowing sanctioned ships to carry crude or petroleum products not sanctioned by the US. Iran’s shadow fleet rose in full force in 2018, after the US unilaterally withdrew from a nuclear agreement with Iran and global powers, officially titled the Joint Comprehensive Plan of Action. The US imposed debilitating sanctions on Iran and has honed in on its oil industry. Energy Aspects estimates that around 15 percent of the world's tanker fleet is under US sanctions. Read more: US weighs lifting sanctions on Iran's 'shadow fleet' to address surging costs Iranian soldiers take part in 'National Persian Gulf Day' in the Strait of Hormuz, on 30 April 2019 (Atta Kenare/AFP)