The US Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two Iranian maritime firms accused of running a scheme that forces commercial vessels to purchase mandatory
The US Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two Iranian maritime firms accused of running a scheme that forces commercial vessels to purchase mandatory “insurance” to transit the Strait of Hormuz, with one firm accepting Bitcoin and other digital assets as payment.
OFAC stated that both companies are linked to the Islamic Revolutionary Guard Corps (IRGC), a powerful branch of Iran’s armed forces. Vessels passing through the Strait of Hormuz, a vital chokepoint that handles around 20% of the world’s oil shipments, are required by the IRGC to secure maritime insurance coverage. This policy is approved by the Persian Gulf Strait Authority, which was designated by Washington in May, and policies are brokered by the Persian Gulf Marine Insurance Company, a state-backed entity.
According to the Treasury, the insurance primarily protects against dangers created by the actions of the Iranian government itself, such as the potential seizure of vessels. US officials have described the requirement as an extortion mechanism designed to generate funds for the Iranian regime and its affiliates.
Iran’s Treasury Secretary Scott Bessent emphasized that the regime is “desperate for cash,” with economic conditions deteriorating and inflation running into triple digits. Bessent warned that the US will not allow Iran to “hold global commerce hostage.”
The second targeted firm, HormuzSafe Marine Services Authority, was set up by Iran’s Ministry of Economy. It promotes itself as a provider of traffic control, security, emergency response, and insurance for vessels in the Strait, and accepts Bitcoin and other cryptocurrencies for payments related to these services. According to the Treasury, accepting digital assets is a deliberate move to bypass Western financial sanctions.
Babak Morteza Zanjani, an Iranian financier who was sanctioned earlier this year, has openly promoted HormuzSafe to his online followers.
Mini dictionary: OFAC (Office of Foreign Assets Control) is a US Treasury unit that administers and enforces economic and trade sanctions to support national security and foreign policy objectives.
Earlier this year, media reports indicated Iran intended to introduce a crypto-based toll system for ships passing through the strait, starting at $1 per barrel. However, blockchain analysts expressed skepticism about whether digital assets were being used on any significant scale for these transactions. TRM Labs policy lead Ari Redbord said there was no data showing large-scale crypto payments being used for the Hormuz toll. Others noted that the spokesperson cited in media reports did not represent the Iranian government directly. The Treasury’s recent move clarifies that at least one government-backed firm now officially accepts Bitcoin for these transactions.
Blockchain analysts noted that, as of April, there was no substantial evidence of cryptocurrencies being used widely to pay for Hormuz tolls, despite earlier announcements by Iranian officials.
As part of the same action, OFAC also sanctioned eight oil tankers and their operators over alleged involvement in shipping Iranian crude and petroleum products. Most of these companies are registered in Hong Kong. The US said it has now sanctioned over 100 vessels connected to Iran’s so-called “shadow fleet” since January.
According to the Treasury, Iran’s maritime insurance schemes are intended to replace revenue lost as a result of Operation Epic Fury, an earlier US effort that targeted illegal oil shipments from the country.
The Strait of Hormuz remains a focal point for global energy markets, with ongoing tensions impacting security and commercial activity in the region.
EntitySanctioned ActivityRolePayment MethodPersian Gulf Marine Insurance CompanyMandatory insurance for Hormuz transitInsurance brokerConventional currencyHormuzSafe Marine Services AuthorityMandatory insurance for Hormuz transitInsurance, traffic, securityBitcoin and digital assetsThe post US sanctions 2 Iranian firms over Bitcoin insurance in Strait of Hormuz transit appeared first on COINTURK NEWS.
