Citing violations under Executive Order 13846, US Sanctions 6 Indian Companies Over Iran Oil Trade, Impacting Bilateral Ties. In a major development in global geopolitics and trade policy, the Trump administration has imposed sanctions on six Indian companies accused of importing petrochemical products from Iran. This action is part of Washington’s broader “maximum pressure” campaign aimed at crippling Iran’s oil revenues a key economic engine for the Islamic Republic.
The move, announced by the US State Department under Executive Order 13846, marks a serious turn in US-India trade relations and introduces significant risk for Indian firms operating in the global petrochemical and logistics space.
US Sanctions 6 Indian Companies Over Iran Oil Trade, Impacting Bilateral Ties
What Triggered the Sanctions?
The six Indian firms are alleged to have participated in transactions worth approximately $221 million involving Iranian-origin petrochemical products between January 2024 and January 2025.
These activities, according to the US, directly support Iran’s ability to fund terrorism, regional destabilization, and domestic repression.
The legal basis for the sanctions stems from Executive Order 13846, signed by President Donald Trump in 2018 following the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA).
The order allows the US government to block property and interests in property of any entity found “knowingly engaging in significant transactions” related to Iranian petroleum or petrochemical products.
The Six Sanctioned Indian Companies: Who Are They?
Here’s a closer look at the Indian companies sanctioned by the United States for involvement in Iran oil trade:
1. Alchemical Solutions Pvt Ltd
- Location: Mumbai
- Accusation: Imported over $84 million in Iranian petrochemicals in 2024
- Sector: Supplier to textiles, paints, plastics industries
- Impact: Faces disruption to global finance access and shipping insurance
2. Global Industrial Chemicals Ltd
- Location: Gujarat
- Accusation: Handled $51 million in methanol imports from Iran
- Sector: Serves coatings and packaging sectors
- Impact: May face severe trade route interruptions and compliance barriers
3. Jupiter Dye Chem Pvt Ltd
- Location: Mumbai
- Accusation: Imported $49 million in Iranian-origin toluene
- Sector: Chemical distribution
- Impact: Exposed to potential financial and shipping consortia restrictions
4. Ramniklal S. Gosalia & Company (RSG Chemicals)
- Location: Mumbai
- Accusation: Purchased over $22 million in Iranian methanol and toluene
- Sector: Domestic chemical trading
- Impact: May suffer from reputational risk and network blacklisting
5. Persistent Petrochem Pvt Ltd
- Location: India (undisclosed)
- Accusation: Imported $14 million via UAE-based Bab Al Barsha Trading, also under sanctions
- Impact: Faces heightened scrutiny for its trans-regional trade model
6. Kanchan Polymers
- Location: India
- Accusation: Small-scale imports of $1.3 million, including polyethylene
- Partner: Tanais Trading (UAE)
- Impact: Financial constraints, despite low trade volume
What These Sanctions Mean in Practice
Under these new measures, all US-based assets of the sanctioned Indian companies are frozen.
Furthermore, any US entity is now prohibited from engaging in transactions with these companies unless otherwise authorized by the Office of Foreign Assets Control (OFAC).
Additionally, any entity 50% or more owned by these firms also becomes automatically subject to sanctions.
This essentially cuts the firms off from:
- International banking systems
- Dollar-denominated transactions
- Global insurance and reinsurance markets
- Supply chains involving US-origin equipment or services
The Broader Context: Cracking Down on Iran’s Oil Export Network
The sanctions on Indian firms are not isolated. They are part of the largest sanctions package since 2018, with over 115 individuals, companies, and vessels blacklisted for ties to Iran’s oil trade.
A central target of this crackdown is the Shamkhani shipping network, allegedly run by Mohammad Hossein Shamkhani, the son of senior Iranian political figure Ali Shamkhani.
The US Treasury accuses this network of facilitating billions in oil sales through front companies, false documentation, and maritime subterfuge to evade detection.
Key Targets of the Wider Crackdown Include:
- 52 vessels
- 15 shipping firms
- Entities across 17 countries, including Panama, Hong Kong, and Italy
India’s Strategic Dilemma: Energy Needs vs. US Pressure
India has long relied on Iranian petrochemicals for economic reasons cost efficiency, favorable credit terms, and proximity. These sanctions complicate that equation.
So far, New Delhi has remained silent, likely weighing the risks of challenging a key strategic partner like the United States. However, the business community is uneasy.
Industry Concerns Include:
- Supply chain disruptions
- Increased operating costs
- Secondary sanctions risk for banks and logistics firms
- Loss of access to Western shipping consortia
Trump’s Dual Pressure: Tariffs on Indian Goods
Adding to the tension, President Trump also announced a 25% import tariff on all Indian goods, citing India’s continued oil and defense purchases from Russia.
In a Truth Social post, Trump lambasted India’s trade policies and accused the country of exploiting American markets.
“India takes from everybody and gives back nothing… All things not good!” President Trump
This one-two punch sanctions and tariffs marks a notable departure from past US policy, which often made exceptions for India given its geopolitical role in Asia.
Iran’s Reaction: Condemnation and a Call to the Global South
Iran quickly condemned the US move as “economic imperialism.” In a statement posted on X (formerly Twitter), the Iranian Embassy in India accused the US of using its economic power to suppress sovereign nations.
“These coercive discriminatory actions violate the principles of international law and national sovereignty.
Resisting such policies is a stand for a more powerful emerging multilateral world order.”
Tehran has called for increased solidarity among developing nations, positioning itself as a leader in a new, multipolar world order.
Nuclear Negotiations Collapse Amid Military Tensions
The timing of these sanctions is no coincidence. In June 2025, the US and Israel launched coordinated military strikes on Iranian nuclear sites, leading Iran to withdraw from ongoing nuclear negotiations.
According to Trump:
“They would like to talk. I’m in no rush to talk because we obliterated their site.”
This suggests that the US is deprioritizing diplomacy in favor of economic and military pressure.
Ripple Effects Across Indian Industry
While only six Indian companies are directly targeted, the fallout may affect many more, including:
- Chemical manufacturers
- Maritime logistics providers
- Oil refiners
- Financial institutions
US regulators are increasingly scrutinizing even indirect links to Iranian trade.
Compliance risk is rising, and many Indian firms may opt to steer clear of any questionable transactions to avoid reputational and financial damage.
Final Thoughts: Escalation or Strategy?
The Trump administration’s aggressive sanctions policy reflects a zero-tolerance approach to Iran’s energy trade.
But the inclusion of Indian firms and the imposition of tariffs suggest a shift toward a more unilateral, transactional foreign policy.
Whether this results in desired policy shifts from India or merely pushes the country closer to Russia and Iran is yet to be seen.
What is certain, however, is that global companies especially those in petrochemicals and logistics must now operate under far greater scrutiny and risk.
Conclusion: Walking the Tightrope of Global Trade
The US sanctions on six Indian companies signal a major inflection point in the intersection of geopolitics, energy security, and global commerce. As the Trump administration doubles down on pressure against Iran, firms across Asia and beyond are finding themselves in the crosshairs of Washington’s foreign policy machine.
For Indian businesses and policymakers alike, the message is clear: engaging with Iran now carries higher-than-ever stakes, not just economically but diplomatically. In this environment, navigating global trade has become not just a business decision but a political one.
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