US targets Iran’s Hormuz ‘extortion’ network

Washington, July 29 (IANS) The United States has sanctioned two Iranian maritime service firms accused of operating an Islamic Revolutionary Guard Corps (IRGC)-backed insurance scheme that Washington says extorts commercial vessels passing through the Strait of Hormuz.

The Treasury Department has also sanctioned eight companies operating tankers that allegedly transported millions of barrels of Iranian crude oil and petroleum products, primarily to China and the United Arab Emirates.

The State Department identified the two Iranian entities as the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority. It said they charged vessels for protection against risks, including seizures, created largely by Iran itself.

“These entities manufacture risk — including the threat of vessel seizures — and then charge commercial vessels for coverage against dangers created by the regime itself, generating revenue that sustains IRGC operations and Iran’s broader campaign of regional destabilization,” State Department spokesperson Tommy Pigott said.

Treasury Secretary Scott Bessent said the sanctions were intended to prevent Iran from exploiting international shipping to fund the IRGC.

“With its economy in freefall and inflation in the triple digits, the regime is desperate for cash,” Bessent said. “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.”

Treasury said the Persian Gulf Marine Insurance Company brokers insurance policies approved by the IRGC-backed Persian Gulf Strait Authority. The authority was sanctioned in May for supporting the IRGC.

HormuzSafe advertises insurance, traffic control, security and emergency services for vessels using the waterway. Treasury said the company accepts Bitcoin and other digital assets as part of efforts to bypass Western sanctions.

The latest action also covers companies based in China, Hong Kong and the Marshall Islands. The eight tankers linked to them sail under the flags of Barbados, Mozambique, Vanuatu and the Marshall Islands, while one has an unknown flag.

The vessels include Well Sail, Lily, Al Salmi, Breeze V, Natsumi, Crystal, Nireta and Yehope. Treasury accused them of carrying Iranian oil or petroleum products to China and the UAE between 2022 and 2026.

The State Department said the ships were part of Iran’s “shadow fleet”, which Tehran uses to evade sanctions. It said the latest designations supported US Navy enforcement of a blockade on Iranian ports and coastline. Washington has sanctioned more than 100 vessels connected to Iran’s shadow fleet this year.

--IANS

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