US Treasury sanctions Iranian Strait of Hormuz extortion network, shadow fleet vessels
The Treasury Department's Office of Foreign Assets Control sanctioned two firms involved in an IRGC-backed scheme extorting commercial vessels transiting the Strait of Hormuz
The Treasury Department's Office of Foreign Assets Control (OFAC) imposed sanctions on the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, which broker IRGC-approved insurance policies forcing commercial vessels to purchase mandatory coverage to transit the strait. The Treasury said the coverage purports to protect vessels from risks such as seizures, though these risks are overwhelmingly created by Iran itself, and includes payments in digital assets designed to evade sanctions.
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."
The Persian Gulf Marine Insurance Company was established by Iran's Central Insurance regulator and brokers policies approved by the Persian Gulf Strait Authority, which was itself sanctioned in May for providing support to the IRGC. Meanwhile, HormuzSafe, developed by Iran's Ministry of Economy, advertises services including insurance, traffic control, security and emergency response to vessels transiting the strait, and accepts payment in Bitcoin and other digital assets. Officials say disgraced Iranian financier Babak Morteza Zanjani, who was sanctioned earlier this year, had promoted HormuzSafe to his social media followers.
The Treasury also sanctioned eight shadow fleet vessels for transporting Iranian crude oil and petroleum products, along with their owning companies. The tankers include the Well Sail, which transported hundreds of thousands of barrels of Iranian petroleum products to the UAE in 2026; the Lily and Al Salmi, which transported oil to the UAE and China respectively since 2025; and the Breeze V, Natsumi, Crystal, Nireta and Yehope, which have transported millions or hundreds of thousands of barrels of Iranian crude to China since as early as 2022.
The eight companies designated for owning or operating these vessels include Qi Hang Ship Management Limited, Marinova Freight Limited, Vast Mighty Limited, Ocean Tranquility Limited, Branch Saying International Trading Co Ltd, Confident Apex Limited, Billion Nexus Int'l Co., Limited, and Nevada Spirit Company Limited. Since the beginning of the year, OFAC has sanctioned over 100 vessels linked to Iran's shadow fleet.
As a result, all property and interests of the designated entities within US jurisdiction are blocked, and US persons are generally prohibited from engaging in transactions involving them.
Treasury noted that violations of US sanctions may result in civil or criminal penalties, which can be imposed on a strict liability basis, and that non-US persons are also prohibited from causing or conspiring to cause US persons to violate sanctions or from engaging in conduct that evades them.