US Treasury Disrupts Iranian Regime's Extortion Scheme in Strait of Hormuz

The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has taken action against an Iranian regime-backed extortion scheme that forces commercial vessels to purchase mandatory maritime insurance to transit the Strait of Hormuz. The scheme, operated by the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, generates revenue for the IRGC through the sale of policies designed to protect vessels from risks created by Iran itself.

OFAC is also imposing sanctions on several vessels responsible for transporting millions of barrels of Iranian crude oil and petrochemical products. Since the beginning of the year, OFAC has sanctioned over 100 vessels linked to Iran's shadow fleet, a covert logistics network that enables the regime to keep oil revenues flowing despite international sanctions.

According to Secretary of the Treasury Scott Bessent, '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.'