The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced new sanctions today targeting an Iranian regime extortion network in the Strait of Hormuz and its covert "shadow fleet" of oil tankers. These actions aim to disrupt Iran's efforts to monetize the vital shipping lane and fund the Islamic Revolutionary Guard Corps (IRGC) amidst its struggling economy.
OFAC designated the Persian Gulf Marine Insurance Company (PGMIC) and HormuzSafe Marine Services Authority, two firms central to an IRGC-backed scheme. This operation forces commercial vessels to purchase mandatory maritime "insurance" to transit the Strait, with payments, including digital assets, used to evade sanctions and funnel funds to IRGC operations. Secretary of the Treasury Scott Bessent said, "With its economy in freefall and inflation in the triple digits, the regime is desperate for cash. The United States will not allow Iran to hold global commerce hostage or use international shipping to finance the IRGC’s terrorism, aggression, and repression."
Additionally, OFAC sanctioned several vessels and associated companies involved in transporting Iranian crude oil and petrochemical products. These include the WELL SAIL, LILY, AL SALMI, BREEZE V, NATSUMI, CRYSTAL, NIRETA, and YEHOPE, along with companies like Qi Hang Ship Management Limited and Confident Apex Limited. These vessels form part of Iran’s "shadow fleet," a covert logistics network crucial for maintaining oil revenues despite international sanctions. Since the beginning of the year, OFAC has sanctioned over 100 vessels linked to this fleet.
These measures were taken pursuant to Executive Order (E.O.) 13902, which targets Iran’s petroleum and petrochemical sectors, reinforcing U.S. military interdiction efforts and intensifying economic pressure on the Iranian regime. All property and interests of the designated entities and individuals within U.S. jurisdiction are now blocked, with severe penalties for violations.