US sanctions Iran's Persian Gulf authority over IRGC 'extortion'
The US Treasury Department on Wednesday sanctioned Iran's Persian Gulf Strait Authority, accusing it of acting as an extortion arm of the Revolutionary Guard by forcing commercial vessels to pay illegitimate tolls, and warned that any entity making payments to the body faces exposure to US sanctions.
Treasury targets Hormuz toll authority
The US Treasury Department on Wednesday sanctioned Iran's Persian Gulf Strait Authority, accusing the body of acting as an extortion arm of the Revolutionary Guard by demanding illegitimate tolls from vessels transiting the Strait of Hormuz. The department stated the authority forces shippers to pay "illegitimate tolls" and surrender sensitive information, with proceeds funneled directly to the IRGC. Treasury Secretary Scott Bessent stated the latest measures reflect Tehran's desperation for cash amid mounting economic pressure.
Washington warns shippers over payments
"The Iranian military's latest attempt to extort global maritime trade is proof that (Operation) Economic Fury has left the regime desperate for cash," Bessent said in a statement. Treasury warned that cooperation with the authority — including payments via fiat currency, digital assets, or in-kind transfers — may expose persons or entities to US sanctions risk.
Tensions flare since February strikes
Regional tensions have escalated since the US and Israel launched military strikes against Iran in late February, prompting Tehran to retaliate against Israeli targets and Gulf allies while closing the strategic waterway. A ceasefire brokered by Pakistan took effect on April 8 and was subsequently extended by US President Donald Trump.
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Global energy flows disrupted
The Strait of Hormuz handles roughly 20% of daily global oil shipments, and the two-month conflict has driven up shipping and insurance costs while disrupting regional energy flows. Heightened insecurity around the chokepoint has affected global markets since Washington and Tel Aviv began their offensive in late February.
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