The U.S. Department of the Treasury today sanctioned Iran's newly established Persian Gulf Strait Authority (PGSA), accusing it of being an Islamic Revolutionary Guard Corps (IRGC) scheme to extort vessels transiting the Strait of Hormuz.
This action targets what the Treasury describes as a flagrant violation of international law and U.S. sanctions, designed to monetize Iran's state-sponsored terror campaign. The Treasury warned that any cooperation with the PGSA, including "toll" payments or providing sensitive vessel information, could expose individuals and entities to sanctions risk due to its ties to the IRGC.
Secretary of the Treasury Scott Bessent said, "The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash." He added, "Under President Trump’s leadership, we will remain relentless in our pursuit to constrict the network of vessels, intermediaries, and buyers through which Iran exports both its oil and malevolence."
The designation of the PGSA falls under Executive Order 13224, as amended, and reinforces the ongoing "Economic Fury" campaign. This broader initiative aims to impose maximum economic pressure on Iran, having already disrupted billions in revenue, frozen nearly half a billion dollars in regime-linked cryptocurrency, and targeted shadow banking networks and illicit oil sales.
The PGSA reportedly works with the IRGC and IRGC Navy to coordinate traffic, requiring vessels to follow Iranian instructions and pay fees for passage, with these funds then funneled to the IRGC, a designated Foreign Terrorist Organization. The Treasury reiterated its readiness to impose secondary sanctions on foreign financial institutions facilitating illicit Iranian commerce.