The US Treasury Department has imposed new sanctions targeting Iran's ability to generate revenue from the Strait of Hormuz, according to an official announcement. The measures include sanctions on two companies and eight ships linked to an alleged extortion mechanism that forces vessels to purchase insurance to pass through the strait.
The US alleges that Iran uses an extortion mechanism that forces ships to buy insurance to transit the Strait of Hormuz, thereby generating revenue for Tehran. The Treasury Department described the mechanism as a 'şantaj mekanizması' (extortion mechanism).
The US Treasury Department described the mechanism as a 'şantaj mekanizması' (extortion mechanism).
— US Treasury Department
The sanctions target two Iranian-linked companies: the Iran Revolutionary Guard Corps-backed Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, which the US says are involved in the alleged scheme. Reports differ on the exact names of the sanctioned firms; one source lists the same two companies, while another does not name them.
8 ships
Sanctioned for carrying Iranian crude oil and petrochemical products.
The US also sanctioned eight ships carrying Iranian crude oil and petrochemical products, as well as eight companies based in China, Hong Kong, and the Marshall Islands identified as their owners or operators.
The flagged nations of the sanctioned ships include the Marshall Islands, Mozambique, Barbados, and Vanuatu, with one ship's flag unknown, according to one report. Another source only lists the Marshall Islands, Mozambique, and Barbados, omitting Vanuatu and the unknown flag.
Updates
The US Treasury revealed that the newly sanctioned insurance policies were designed to offset revenue losses from Operation Epic Fury, with coverage specifically targeting risks like vessel seizures that the department asserts are orchestrated by Iran itself. These policies were formally approved by the Persian Gulf Strait Authority, an entity previously linked to the IRGC. Additionally, Treasury Secretary Scott Bessent characterized the Iranian economy as being in freefall with triple-digit inflation, noting that the regime is desperate for cash.
US Treasury Secretary Scott Bessent stated that the Iranian regime is 'desperate for cash' as its economy faces freefall and triple-digit inflation. Additionally, the insurance scheme was reportedly developed by Iran's Ministry of Economy, with policies approved by the Persian Gulf Strait Authority, a body designated by the US in May as being backed by the IRGC. The Treasury Department further clarified that these schemes were established to replace revenue lost to Operation Epic Fury and noted that the policies cover risks such as vessel seizures that 'are overwhelmingly created by Iran itself.'
The US Treasury Department's OFAC has sanctioned two companies under an executive order targeting Iran's petroleum and petrochemical sectors, following the development of the HormuzSafe Marine Services Authority by Iran's Ministry of Economy. This authority, which markets itself as a provider of security and insurance, operates with policies approved by the Persian Gulf Strait Authority. Treasury Secretary Scott Bessent noted the move occurs as the Iranian economy faces triple-digit inflation and a freefall.
The US Treasury Department's Office of Foreign Assets Control (OFAC) has specifically designated the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority for operating in Iran's financial sector. According to US Treasury Secretary Scott Bessent, these schemes were established to replace revenue lost to Operation Epic Fury as the Iranian economy struggles with triple-digit inflation. Additionally, the insurance policies were approved by the Persian Gulf Strait Authority, an entity the US Treasury identified in May as being backed by the IRGC.
