The United States has imposed fresh sanctions on a network accused of disguising Iranian-origin liquid petroleum gas (LPG) as Omani fuel and shipping it to buyers across South and East Asia, as the Trump administration intensifies its economic pressure campaign against Tehran.
The action targets what US authorities describe as a sophisticated sanctions-evasion network that relied on front companies in the United Arab Emirates and China, foreign bank accounts and vessels linked to Iran’s so-called shadow fleet to conceal the origin of millions of barrels of LPG. According to the US Department of the Treasury, the operation generated hundreds of millions of dollars in revenue for Iran despite existing sanctions.
The Treasury Department’s Office of Foreign Assets Control (OFAC) announced the measures on Friday, saying the sanctions are aimed at exposing those helping sustain an economic lifeline for Iran while using international commercial infrastructure to mask their activities.
US Treasury Secretary Scott Bessent said the latest move forms part of Washington’s broader “Economic Fury” campaign against Tehran.
“Iran’s economy is floundering, and its military is decimated,” Bessent said in a statement. “Through Economic Fury, Treasury will continue to sever Iran’s shadow fleet, shadow banking networks, and access to global trade.”
US State Department spokesperson Tommy Pigott echoed the administration’s position, saying on X that the United States would maintain “maximum pressure” on Iran by targeting networks involved in the illicit fuel trade.
What the latest US sanctions target
Apart from the LPG shipping network, OFAC also sanctioned Iranian exchange house Mehrdad Geramian Nik and Partners Company along with its leadership.
US authorities alleged that the firm facilitated the movement of hundreds of millions of dollars in foreign currency on behalf of Iranian banks that are already under sanctions.
According to the Treasury Department, Iran’s foreign exchange system depends heavily on brokers and rahbar companies that operate through overseas shell entities. These structures are used to obscure links to Iran, route funds through accounts held outside the country and bypass international restrictions.
Officials said Iranian exchange houses process billions of dollars in foreign currency transactions annually, helping the Iranian government and its armed forces access funds generated through oil and petrochemical sales.
Part of wider campaign against Iran’s finances
The Treasury Department said the latest designations build on previous actions against Iranian financial intermediaries, including Radin Exchange, Arz Iran Exchange, Opal Exchange and Amin Exchange.
Washington argues that restricting these networks reduces the Iranian government’s ability to generate and move funds used for weapons development, support for proxy groups and other activities that the US opposes.
Treasury officials said the sanctions were imposed under Executive Order 13902, which authorises action against individuals and entities operating in Iran’s petroleum and financial sectors.
The department said it remains committed to maintaining maximum pressure on Tehran and disrupting efforts to generate, transfer and repatriate revenue.
Treasury cites broader crackdown
US officials said recent enforcement efforts have targeted Iran’s shadow banking system, oil transportation networks and entities involved in supplying military-related goods.
The department also highlighted actions against vessels and companies linked to Iran’s illicit oil trade, along with measures that it said resulted in the freezing of nearly half a billion dollars in regime-linked cryptocurrency assets.
Treasury warned that companies, vessels and financial institutions facilitating Iranian trade through covert commercial or financial channels could face US sanctions, including possible secondary sanctions on foreign financial institutions.
The latest measures, the department said, are intended to further limit Iran’s access to international markets and financial networks.