U.S. Imposes New Sanctions on Global Oil Trader Wellbred Over Secret Iran Links

The U.S. government has sanctioned Singapore-based Wellbred Capital alongside its entities in the UAE, Switzerland, and France due to hidden links with Iran. Tied to oil magnate Mohammad Hossein Shamkhani, the company forms part of a shadow shipping network moving illicit oil and petroleum products globally.

BUSINESS NEWS

Aagahi Hub

8/25/20261 min read

U.S. and Iran flags with oil barrels graphic illustrating U.S. sanctions on oil trader Wellbred on A
U.S. and Iran flags with oil barrels graphic illustrating U.S. sanctions on oil trader Wellbred on A

The United States government has placed heavy economic sanctions on Wellbred Capital, a major oil trading company based in Singapore. The move also targets several of Wellbred's international branches in the United Arab Emirates, Switzerland, and France as part of a ongoing effort to block Iran's global financial channels.

According to official updates from the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), the company was secretly linked to an Iranian oil shipping network run by Mohammad Hossein Shamkhani.

Who is Affected by the New Sanctions?

The latest U.S. order targets nearly 60 different businesses, individuals, and ocean vessels across the world. Specific companies named in the announcement include:

  • Wellbred Capital: The main headquarters operating out of Singapore.

  • Wellbred Trading FZCO: The firm's branch based in Dubai, UAE.

  • Wellbred Trading SA: The firm's European branch located in Geneva, Switzerland.

  • La Nivernaise de Raffinage SAS: A French biofuels refinery tied to the company's network.

Wellbred is a major commodities trader that deals in crude oil, naphtha, petrochemicals, and liquefied petroleum gas (LPG) with additional offices in Saudi Arabia and Nigeria.

Understanding the Iranian Connection

U.S. officials explained that Mohammad Hossein Shamkhani—the son of the late Iranian security official Ali Shamkhani—built Wellbred to operate outside his main Iranian firms. However, authorities confirmed that he remained in full control of the business behind the scenes.

Over recent years, Shamkhani built a giant shadow fleet of oil tankers and cargo ships. This fleet secretly transports oil and petroleum products from Iran and Russia to buyers across the globe, earning tens of billions of dollars in profit.

The U.S. Treasury previously blacklisted parts of Shamkhani's shipping network during earlier enforcement actions in 2025 and 2026. The latest round of sanctions closes remaining loopholes, blocking these firms from using the U.S. banking system or doing business with international partners.

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