Panama’s Longstanding Role in Facilitating Iran’s Sanctions Evasion Efforts Must Cease Immediately

Panama Responsible for Supporting Billions in Iran Oil Sales. Panama Should Face Comprehensive Sanctions Designations and Forfeiture of Assets/Penalties for its Actions

(New York, NY) — United Against Nuclear Iran (UANI) today renewed calls for Panama to immediately cease facilitating Iran’s illicit oil trade.  Panama’s brazen efforts to gloss over its longstanding support of the regime must stop. Panama must de-flag all Iranian oil-smuggling vessels. 

“Panama has long been the flag of choice for sanctions violators and oil smugglers, and despite Panama’s spin room claims of progress, the Panama Maritime Authority continues to fail in ending its complicity in Iranian oil smuggling,” said Ambassador Mark D. Wallace, CEO of UANI. 

“The lack of consistent, proactive enforcement allows Iran’s smuggling operations to continue unchecked. This is not just a failure of Panama’s registry—it’s a direct threat to global sanctions compliance and regional and U.S. security.  Panama has facilitated billions of dollars of Iran’s oil sales that the regime has used to arm its proxies, spread terror, and kill innocents. Panama should immediately face full sanctions and forfeiture of assets and penalties associated with the billions of dollars of Iran’s oil that Panama has assisted in smuggling around the world.

“The Panama flag flying on vessels around the world is stained with blood.”

Panama has taken steps to placate its critics, including deregistering 107 vessels in March 2025, but these efforts mask its continued flagging of Iran smuggling vessels. Just last month, on April 28, 2025, the U.S. Treasury Department sanctioned three vessels linked to Iran’s oil smuggling network—two of which were flagged by Panama. These actions underscore the ongoing widespread use of Panama’s registry for illicit trade. 

Panama knows this and has taken fully insufficient action. Panama is the Iranian oil- smuggling flag of choice. More vessels that comprise UANI’s “Ghost Armada”—the world’s most authoritative dataset on Iranian oil-carrying vessels— fly the flag of Panama than any other country.  

UANI’s analysis reveals that nearly one in five vessels suspected of transporting Iranian oil—17% or 94/542 of the total tracked—sails under Panama’s flag. Despite this alarming figure and the continued use of Panama’s registry for sanctions evasion, the Panama Maritime Authority has largely remained inactive, obfuscates its role, and engages in lobbying and spin to distract from its actions. UANI is calling for immediate and decisive enforcement action to prevent Panama’s flag from continuing to facilitate Iranian oil smuggling.

Further information: UANI’s Ghost Armada resource.