New US sanctions target Iran LPG and shadow banking system

The United States has imposed new sanctions on a network of individuals, companies and vessels accused of facilitating the shipment of hundreds of millions of dollars’ worth of Iranian-origin liquefied petroleum gas (LPG) to South and East Asia by disguising its origin as Omani fuel.

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) said the network used front companies, foreign bank accounts and Iran’s “shadow fleet” of vessels to move LPG while concealing its Iranian source and evading sanctions.

“Iran’s economy is floundering and its military is decimated,” Treasury Secretary Scott Bessent said. “Through Economic Fury, Treasury will continue to sever Iran’s shadow fleet, shadow banking networks, and access to global trade.”

Officials said the operation relied on layered ownership structures, falsified documentation and complex maritime routes to obscure trade flows.

OFAC said the network used a series of front companies, foreign bank accounts, and Iran’s shadow fleet to transport millions of barrels of LPG to buyers in South and East Asia while concealing its Iranian origin.

Several vessels and entities linked to the scheme have been designated for their role in moving Iranian LPG, using false documentation and complex ownership structures to disguise the source and evade US sanctions.

In a parallel action, the Treasury Department sanctioned Iran-based exchange house Mehrdad Geramian Nik and Partners Company and its leadership, accusing them of moving hundreds of millions of dollars in foreign currency on behalf of sanctioned Iranian banks.

Officials said Iran’s exchange system depends on brokers and “rahbar” companies that use overseas shell firms and front companies to move funds through international banking channels, enabling access to global financial systems while concealing Iranian ties.

Treasury said these mechanisms help Iran convert oil and petrochemical revenues into usable currencies, supporting military and proxy activities and undermining sanctions enforcement.

The Treasury Department said the action forms part of its “Economic Fury” campaign, aimed at maintaining maximum pressure on Iran by targeting its ability to generate, move and repatriate funds.

Officials said the campaign has already disrupted tens of billions of dollars in Iran-linked revenues and includes measures against shadow banking networks, illicit oil shipments and cryptocurrency-linked activity.

Washington warned that any entity involved in facilitating Iran’s trade or financial evasion risks exposure to secondary sanctions.

OFAC also designated multiple shipping companies and LPG tankers allegedly involved in transporting Iranian gas, including vessels flagged in Panama, Palau and St. Kitts and Nevis, which authorities say have moved millions of barrels of LPG since 2020.

The Treasury said the vessels were operated through layered ownership structures designed to conceal links to sanctioned Iranian entities.

Officials said the vessels have collectively transported millions of barrels of Iranian LPG since 2020.

OFAC said the exchange house facilitated hundreds of millions of dollars in transactions for sanctioned Iranian banks using brokers and “rahbar” companies that route funds through overseas shell firms and foreign accounts.

All assets of the designated individuals and entities under US jurisdiction are now blocked, and US persons are prohibited from engaging in transactions with them unless authorised.

OFAC warned that foreign entities engaging in sanctions evasion or facilitating Iranian trade could also face penalties, including secondary sanctions.

The agency added that enforcement actions are part of a broader effort to restrict Iran’s access to global financial systems and reduce revenue streams linked to its military and regional activities.