US Sanctions Six Indian Companies for Iran Petroleum Trade: Full Details and Impact

US Has Sanctioned Indian Companies

On July 31, 2025, the US Department of State announced a sweeping set of sanctions targeting 20 entities worldwide for their involvement in the Iranian petroleum and petrochemical sector. Out of these, six Indian companies have been specifically named. According to the US government, these firms have allegedly purchased or imported petrochemical products from Iran worth more than $220 million between 2024 and 2025. These sanctions fall under Executive Order 13846, which prohibits transactions with Iran’s energy sector because the revenue from such trade is considered to fuel terrorism, regional conflicts, and internal oppression in Iran.

This decision is being seen as a serious escalation of enforcement and is likely to impact India-US trade dynamics in the coming months.

The Six Indian Firms Named by the US

The following six Indian companies have been sanctioned by the US for alleged involvement in Iranian petrochemical trade:

Global Industrial Chemicals Limited

This company is alleged to have imported Iranian products, including methanol, valued at over USD 51 million during the period from July 2024 to January 2025.

Jupiter Dye Chem Private Limited

Jupiter Dye Chem, a well-known petrochemical trader in India, has been accused of buying Iranian-origin chemicals such as toluene, valued at around USD 49 million between January 2024 and January 2025.

Ramniklal S. Gosalia and Company

Ramniklal has reportedly purchased and imported Iranian petrochemical products worth over USD 22 million, particularly methanol and toluene, during the same period.

Persistent Petrochem Private Limited

Persistent Petrochem allegedly imported USD 14 million worth of petrochemicals from Iran between October 2024 and December 2024, including shipments sourced through a UAE-based trading company.

Kanchan Polymers

The smallest among the sanctioned firms, Kanchan Polymers, is said to have imported USD 1.3 million worth of polyethylene and related products from Iran.

What Executive Order 13846 Means

The Executive Order 13846 (E.O. 13846) was issued by the United States in 2018 after withdrawing from the Iran nuclear deal. Its main purpose is to restrict and penalize any company or individual worldwide who engages in significant financial transactions with Iran’s petroleum, petrochemical, or energy sectors.

By sanctioning these six Indian companies under Section 3(a)(iii) of this executive order, the US has effectively blocked all their assets under US jurisdiction. Moreover, any company that owns 50% or more stakes in these entities will also come under automatic sanctions.

No US person or business is allowed to conduct financial or business transactions with these sanctioned companies unless they have special authorization from the Office of Foreign Assets Control (OFAC).

The Immediate Effects of These Sanctions

The sanctions have serious financial and operational consequences for the listed companies. These include:

Additionally, any foreign firms or banks found to be supporting these sanctioned companies could also face secondary sanctions, effectively isolating these firms from the global financial system.

Broader Geopolitical and Economic Context

The US has been increasing pressure on Iran’s energy exports for years. It believes that revenues from oil and petrochemicals are being used by Tehran to support militant groups in the Middle East and suppress dissent at home.

In February 2025, the US had also sanctioned four Indian maritime companies for their alleged involvement in facilitating Iranian oil shipments. The current action is part of this larger campaign to disrupt Iran’s “shadow fleet” and eliminate financial networks that sustain its petroleum sector.

This action is also significant in the context of India’s historical ties with Iran, especially for energy imports and strategic infrastructure projects like the Chabahar port.

Potential Impact on India-US Relations

While these sanctions are directed at private Indian companies and not the Indian government, they may still affect bilateral relations between the two countries:

At the same time, India will need to balance its strategic partnership with the US and its long-standing economic interests with Iran.

What Happens Next?

The companies that have been sanctioned can appeal to OFAC and demonstrate that they have ceased their involvement in Iranian petroleum trade. However, until they are delisted, their operations will remain significantly restricted.

The US Department of State has clarified that the goal of these sanctions is not punishment, but to encourage a change in behavior. This means if these companies modify their conduct and demonstrate compliance, there may be an opportunity for removal from the sanctions list.

Conclusion

The sanctions on six Indian companies mark a significant step in the US’s efforts to isolate Iran’s petroleum trade network. With over $220 million worth of trade under scrutiny, the case highlights the importance of compliance, due diligence, and geopolitical awareness for Indian businesses operating in international markets.

As the situation develops, the impact of these sanctions on India’s private sector and diplomatic relations with the US will become clearer in the coming months.