US Hits Iranian Extortion Ring in Strait of Hormuz

The United States has imposed sanctions on two Iranian maritime service firms accused of operating an insurance scheme backed by the Islamic Revolutionary Guard Corps (IRGC) that extorts commercial vessels passing through the Strait of Hormuz. The Treasury Department 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 two Iranian entities, Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, charge vessels for protection against risks created largely by Iran itself. The State Department said these entities 'manufacture risk' and then charge commercial vessels for coverage, generating revenue that sustains IRGC operations and Iran's broader campaign of regional destabilization.

Treasury Secretary Scott Bessent stated that the sanctions aim to prevent Iran from exploiting international shipping to fund the IRGC. He noted that with its economy in 'freefall' and inflation in the triple digits, the regime is desperate for cash. 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.