US steps up scrutiny on oil trade as sanctions risk intensifies

US authorities are tightening scrutiny on oil trade flows as concerns grow over sanctions exposure linked to complex global supply chains.

The focus is increasingly on transactions involving Iranian crude moving through indirect routes, often involving independent refiners and layered trading structures. These flows can pass through multiple jurisdictions, making it harder for banks and commodity finance providers to fully assess risk.

For financial institutions, the challenge is shifting. Exposure is no longer confined to direct counterparties but extends across shipping networks, intermediaries and payment chains. This is forcing banks to take a more cautious approach, particularly where ownership structures and cargo origins are not fully transparent.

Compliance teams are under pressure to strengthen monitoring and due diligence, especially in energy-related transactions where geopolitical risk remains elevated. What once may have been considered routine trade flows now require deeper analysis before financing can be approved.

The result is a tightening of conditions across commodity finance. Liquidity remains available, but access is becoming more selective as institutions prioritise risk management over volume.

As geopolitical tensions continue to shape global trade, sanctions risk is becoming a defining factor in how commodity finance is structured and delivered.