The Treasury Department’s Office of Foreign Assets Control sanctioned a network of entities and individuals Iran was allegedly using to extort commercial shipping traffic through the Strait of Hormuz on July 29.
The action is part of an escalating maximum-pressure financial campaign against Tehran that has included back-to-back Treasury sanctions over consecutive days targeting Iranian shipping, air, and military funding networks, according to the department.
The sanctions are designed to cut off revenue streams that fund the IRGC and its proxy operations by targeting the financial infrastructure Iran uses to impose illegal tolls and fees on commercial vessels transiting the strait. The Strait of Hormuz connects the Persian Gulf to the Gulf of Oman and handles roughly 17 million barrels of oil per day, making it the world’s most important oil transit chokepoint.
The timing of the sanctions is directly coordinated with U.S. Central Command military strikes against IRGC targets, reflecting a combined military and financial pressure strategy against Iran.
Any sustained disruption to shipping through the strait would have immediate consequences for global energy prices and U.S. gasoline costs. Approximately 20% of the world’s traded oil passes through the waterway daily.
The sanctioned entities and individuals are now blocked from accessing the U.S. financial system, and any U.S. persons or companies doing business with them face potential penalties. Foreign companies engaging with the sanctioned network also risk secondary sanctions.