Abram Paley, the US Deputy Special Representative for Iran Affairs issued the call during his trip to Panama, according to AFP report cited by IRNA.
Iran and its related actors are trying to circumvent the sanctions as they are trying to take advantage of the registration of the Panamanian flag for their ships, Paley claimed.
The American official emphasized that the aim of his visit was "to make sure that the Panamanian shipping registry and jurisdiction are not used by entities that are trying to circumvent US sanctions against Iran."
According to the Maritime Administration of Panama, 8,540 ships are registered in this country by foreign firms, which makes up about 16% of the global commercial fleet.
Washington claims that some of the Panamanian-flagged vessels are being used to transport Iranian oil and oil derivatives to circumvent the US sanctions.
Paley said the US administration expects the Panamanian government to continue cooperating with Washington based on its domestic laws and international obligations.
The Central America country is known for its famous Panama Canal which connects the Atlantic and Pacific Oceans and is a global shipping route, with over 14,000 vessel transiting the canal every year.
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