In a statement announcing fresh sanctions, the US Treasury Department’s Office of Foreign Assets Control (OFAC) said “anyone cooperating” with the so-called strait authority may be providing support or services to Iran’s Islamic Revolutionary Guard Corps (IRGC), which Washington designates as a Foreign Terrorist Organization.
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“Anyone cooperating with the so-called strait authority may be providing support to and receiving services from the IRGC, which ultimately benefits from this attempted extortion, and may therefore be exposed to sanctions risk,” the Treasury Department said.
The Treasury accused the Persian Gulf Strait Authority (PGSA) of spearheading an Iranian-controlled scheme aimed at extracting illegitimate tolls from commercial vessels transiting the Strait of Hormuz, one of the world’s most critical oil shipping chokepoints.
US Treasury Secretary Scott Bessent said the move reflected what he called Iran’s growing financial desperation under the Trump administration’s “Economic Fury” sanctions campaign.
“The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash,” Bessent said.
US targets Iran-linked Strait of Hormuz controls
According to the Treasury statement, the PGSA works alongside the IRGC and the IRGC Navy to coordinate maritime traffic through the Strait of Hormuz and compel vessels to comply with Iranian navigation directives in exchange for “safe passage.”
The US alleged that vessels transiting the waterway are required to submit information to receive “permission” from the authority and follow Iranian-designated routes near Iran’s coast while paying fees for passage.
Treasury said funds collected through the arrangement are ultimately funneled to the IRGC.
The department formally designated the PGSA under Executive Order 13224, a counterterrorism authority used by Washington to sanction entities accused of supporting terrorist organizations.
The sanctions action also builds on recent US guidance warning companies against making “toll” payments or sharing sensitive vessel information with Iranian authorities for passage through the strait.
Also read: US adds Persian Gulf Strait Authority to sanctions list, Treasury website shows
Treasury said such payments could include fiat currency, digital assets, offsets, informal swaps or even nominal charitable donations.
Maximum pressure campaign intensifies
The Treasury Department said Thursday’s action forms part of the Trump administration’s renewed “maximum economic pressure” campaign against Iran under National Security Presidential Memorandum 2.
The statement said Treasury has intensified efforts to target Iran’s oil revenues, shadow banking networks, cryptocurrency holdings and shipping infrastructure. It also warned that any person or vessel facilitating illicit Iranian oil trade could face US sanctions exposure.
Treasury further cautioned foreign financial institutions that engaging in significant transactions involving designated entities could trigger secondary sanctions, including restrictions on correspondent or payable-through accounts in the United States.
Under the sanctions announced Thursday, all property and interests in property of the designated entity within US jurisdiction are blocked, and US persons are generally prohibited from engaging in transactions involving the sanctioned entity unless specifically authorized by OFAC.
The Treasury Department said it would continue targeting what it described as sanctions evasion networks and any foreign companies supporting Iranian commerce, including airlines and maritime intermediaries.
Strait of Hormuz, located between Iran and Oman, remains a vital corridor for global crude oil and liquefied natural gas shipments, making any disruption or regulatory uncertainty in the waterway closely watched by global energy and shipping markets.