The US tightened sanctions against Iran’s oil industry on Wednesday as Tehran continues to block the strategic Strait of Hormuz. This latest escalation follows the ongoing Middle East conflict and targets the regime’s critical petroleum transport infrastructure.
Specifically, the Treasury Department penalized more than two dozen individuals, companies, and vessels. These entities allegedly operate within the vast shipping network of petroleum magnate Mohammad Hossein Shamkhani.
Treasury officials identified the Shamkhani network as a primary target in their campaign of financial pressure. Mohammad Hossein Shamkhani is the son of the late security advisor Ali Shamkhani. Both men died on 28 February during the initial US-Israeli military strikes.
“Treasury is moving aggressively with ‘Economic Fury’ by targeting regime elites like the Shamkhani family that attempt to profit at the expense of the Iranian people,” stated US Treasury Secretary Scott Bessent.
Furthermore, the State Department issued a separate communique emphasizing the strategic necessity of these measures. “The United States is acting to decisively limit Iran’s ability to generate revenue as it attempts to hold the Strait of Hormuz hostage,” the department noted.
Impact on Global Energy Markets
Iran effectively closed the Strait of Hormuz, a vital conduit for global oil and gas, to retaliate against the war campaign. Consequently, the United States has responded by initiating a naval blockade of all major Iranian ports.
On Tuesday, the Treasury Department ended a temporary sanctions waiver that previously allowed the sale of Iranian oil at sea. While officials initially granted the waiver to stabilize surging oil prices, they now prioritize cutting off Tehran’s remaining revenue streams.
The US alleges that the Shamkhani network operates through front companies in both Iran and the United Arab Emirates. These consulting and shipping firms maintain a secret fleet to dodge international sanctions and move petroleum products across borders.
In addition to the shipping network, the Treasury Department sanctioned Seyed Naiemaei Badroddin Moosavi on Wednesday. Officials described Moosavi as a key financier for Hezbollah, the Iran-backed militant group involved in the regional conflict.
Finally, the US targeted three companies involved in a complex money laundering scheme. This operation allegedly traded Iranian oil for Venezuelan gold to bypass the global financial system.
