US Sanctions Iran-Linked Insurance Scheme for Strait of Hormuz Ships

The US Treasury has imposed sanctions on two Iranian maritime insurance companies for running an extortion scheme in the Strait of Hormuz, forcing ships to buy coverage against risks largely created by Iran itself.

The sanctioned entities are Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, which accepted payment in Bitcoin and other digital assets as part of the regime's attempts to bypass Western sanctions.

Treasury described the arrangement as extortion rather than insurance, noting that the policies covered risks such as vessel seizures that 'are overwhelmingly created by Iran itself.'

The US Treasury has barred American persons from dealing with the two companies, and foreign firms that transact with them risk being sanctioned themselves.

The Strait of Hormuz is a critical energy chokepoint, and traffic through it has thinned during weeks of US strikes on Iran that have kept oil prices elevated.