The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) said that it has sanctioned a network of individuals, entities, and vessels responsible for shipping hundreds of millions of dollars’ worth of Iranian-origin liquid petroleum gas (LPG) intentionally disguised as Omani LPG to end users in South and East Asia.
The network used front companies in the United Arab Emirates and China, foreign bank accounts, and Iran’s shadow fleet to move millions of barrels of Iranian LPG while concealing its Iranian origin and evading US sanctions.
OFAC said it is taking this action to expose the complicit actors enabling an economic lifeline for Iran while exploiting commercial infrastructure to obfuscate their actions.
Secretary of the Treasury Scott Bessent in a statement, said that “Iran’s economy is floundering, and its military is decimated.”
He added, “Through Economic Fury, Treasury will continue to sever Iran’s shadow fleet, shadow banking networks, and access to global trade.”
US State Department spokesperson Tommy Pigott, in a post on X, added, “The US is sanctioning networks that have smuggled hundreds of millions of dollars in Iranian fuel. The Trump Administration will maintain maximum pressure on the Iranian regime through Economic Fury.”
OFAC is also taking action against Iranian exchange house Mehrdad Geramian Nik and Partners Company and its leadership, who have moved hundreds of millions of dollars of foreign currency on behalf of sanctioned Iranian banks.
Iran’s foreign exchange system relies heavily on selected brokers and rahbar companies, which use overseas shell and front companies to conceal Iranian connections, bypass sanctions, and move funds through accounts typically held outside Iran on behalf of Iranian bank customers.
Iranian exchange houses facilitate billions of dollars in foreign currency transactions each year, enabling the regime and its armed forces to evade sanctions, abuse the international financial system, and move funds derived from oil and petrochemical sales, the statement read.
OFAC has recently taken multiple actions to dismantle Iran’s network of brokers, including against Radin Exchange, Arz Iran Exchange, Opal Exchange, and Amin Exchange.
The actions further restrict the Iranian regime’s access to revenue it uses to develop weapons, support terrorist proxies, and enrich regime insiders abroad at the expense of the Iranian people.
The Treasury Department said it remains committed to maintaining maximum pressure on Iran and to targeting the regime’s ability to generate, move, and repatriate funds. Today’s action is being taken pursuant to E.O. 13902, which targets persons operating in Iran’s financial and petroleum sectors, the statement read.
These designations will advance Treasury’s Economic Fury and build on a series of OFAC actions targeting Iran’s shadow banking and petroleum sales networks.
The Treasury Department is maintaining maximum pressure on Iran and targeting the regime’s ability to generate, move, and repatriate funds.
Treasury is aggressively advancing Economic Fury and has disrupted tens of billions of dollars’ worth of revenue from being otherwise accessible to the Iranian regime and its proxies. This includes actions that have led to the freezing of nearly half a billion dollars in regime-linked cryptocurrency.
In addition, Treasury has cracked down on Tehran’s global shadow banking networks; designated networks supplying weapons and other military components to Iran; sanctioned a corrupt Iraqi official who has facilitated the sale of oil along with Iran-backed militias operating in Iraq; taken numerous actions against Iran’s terrorist proxies; and targeted shadow fleet vessels, companies, and other entities that sustain Iran’s illicit oil industry.
Through the blockade, the Trump Administration is directly targeting the regime’s primary revenue stream. Any person or vessel facilitating the illicit trade of oil or other commodities, through covert trade or financial channels, risks exposure to US sanctions.
Treasury will continue to vigorously target both traditional sanctions evasion schemes and the exploitation of digital assets while continuing to freeze funds stolen from the Iranian people.
Treasury is also prepared to take action against any foreign company supporting illicit Iranian commerce, including airlines, and, as necessary, may impose secondary sanctions on foreign financial institutions that facilitate Iran’s activities.
