US Hits Iran's Extortion Insurance Scheme with Sanctions

The US Treasury Department has imposed sanctions on two Iranian maritime service firms for operating an insurance scheme allegedly backed by the Islamic Revolutionary Guard Corps (IRGC). The Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority are accused of extorting commercial vessels passing through the Strait of Hormuz.

According to the Treasury Department, these entities create risk and then charge vessels for coverage against dangers created by Iran itself. This scheme generates revenue that sustains IRGC operations and contributes to regional destabilization.

The sanctions also target eight companies operating tankers that allegedly transported millions of barrels of Iranian crude oil and petroleum products primarily to China and the UAE. These companies include Well Sail, Lily, Al Salmi, Breeze V, Natsumi, Crystal, Nireta, and Yehope.

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