On 28 May, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that it sanctioned Iran’s “Persian Gulf Strait Authority,” accusing the organization of serving as a front for the Islamic Revolutionary Guard Corps (IRGC) and facilitating what Washington describes as an extortion scheme targeting international maritime traffic.
According to the Treasury Department, the authority is part of a broader effort by Iran to generate revenue for the IRGC, which the United States designates as a terrorist organization. U.S. officials have warned that companies or individuals cooperating with the authority could face sanctions exposure if they are found to be providing material support to the IRGC.
“The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash,” Treasury Secretary Scott Bessent said in a statement.
He added that the U.S. campaign has sought to tighten financial pressure on Tehran by targeting revenue streams linked to its weapons development, regional proxy groups and nuclear activities.
The move builds on earlier U.S. guidance warning shipping companies and maritime operators against complying with Iranian demands related to transit through the Strait of Hormuz.
Treasury officials said such demands could include “toll” payments made through traditional currency transfers, digital assets, barter arrangements, or other forms of compensation, including so-called charitable donations.
The guidance also cautioned against sharing sensitive vessel information with Iranian authorities.
To remind, Iran’s Persian Gulf Strait Authority recently announced plans to establish a controlled maritime zone within the Strait of Hormuz, one of the world’s busiest oil transit chokepoints.
Under the proposal, vessels would be required to coordinate with the authority and obtain authorization before entering the area.
The Persian Gulf Auhtority authority claims its jurisdiction extends from Kuh-e Mubarak in Iran to waters south of Fujairah in the United Arab Emirates on the eastern side of the strait, and from Iran’s Qeshm Island westward to Umm al-Quwain in the UAE.
Starved of revenue and severely weakened by Operation Epic Fury, Iran’s IRGC extorts vessels transiting the Strait of Hormuz through the so-called Persian Gulf Strait Authority (PGSA), a government agency aimed at imposing illegitimate tolls on commercial traffic and forcing vessels to follow Iranian direction in return for safe passage.
…the Treasury stated.