The Department said the company “bought millions of dollars worth” petrochemical products for “forward the shipment to China”. The company was one of the eight hits in the latest round of sanctions. The others are situated in UAE, Hong Kong, and China.

The sanctions came soon after India’s External Affairs Minister S. Jaishankar draped up his visit to Washington wherein he met several officials, including Secretaries Antony Blinken of State, Lloyd Austin of Defence, Gail Raimondo of Commerce, and National Security Adviser Jake Sullivan. India has stood by the sanctions levied by the US on Tehran, and its companies have ceased importing petroleum products from Iran. The unproven deals made by Tibalaji, describing itself as a “growing petrochemical trading company”, never appear for importing Iranian material to India but rather for China. Most US sanctions were boosted after Iran signed a contract with the five permanent members of the UN Security Council and Germany in 2015 to restrain its nuclear program skilled in weaponising it.

Eventually, they were re-imposed after Former US President Donald Trump drew from the deal and Tehran resumed its nuclear weapons-capable program. He warned that Washington would implement the sanctions “so long as Iran refuses a mutual return to full implementation” of the deal.

The Treasury Department said under the sanctions, all the properties and welfare in the eight US companies having at least 50% interest “must be blocked” and reported to its Office of Foreign Assets Control (OFAC).

The Department said that this also smears any Americans who may have control over the company’s assets, and persons tangled in certain dealings with them could also face approvals or execution actions.

It added that Tibalaji bought “petrochemical products that include methanol and base oil, for forwarding shipment to China” through deals