U.S. Sanctions Iran’s Persian Gulf Strait Authority Controlling Hormuz Vessel Transit

The sanctions target Iran’s Persian Gulf Strait Authority, a body set up to manage requests for passage through the Strait of Hormuz and charge transit fees to vessels using the waterway.      Tensions remain high in the Gulf following the war involving Iran, the United States and Israel.

The Strait of Hormuz normally handles about a fifth of global oil and natural gas shipments, and restrictions in the area have increased energy prices and disrupted global shipping operations.

The US Treasury Department added the Persian Gulf Strait Authority to its Specially Designated Nationals (SDN) sanctions list through the Office of Foreign Assets Control.      US Treasury Secretary Scott Bessent said Iran was trying to pressure global maritime trade by tightening control over the strait.       “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 in a statement.

The sanctions were announced after US forces carried out strikes on an Iranian military facility following the reported downing of Iranian attack drones, according to US officials speaking on condition of anonymity.      Iran’s Revolutionary Guard has defended the shipping control measures, saying vessels should use transit corridors designated by Tehran. It also warned that ships moving outside those routes could face attacks or other security risks.

Iran earlier published a map reaffirming its claims over large stretches of water near the Strait of Hormuz.

According to Iranian officials, transit tolls through the strait could reach up to $2 million per vessel.

President Donald Trump said negotiations with Iran were continuing despite the latest military exchanges and sanctions. “They want very much to make a deal,” Trump said during a Cabinet meeting on Wednesday. “So far, they haven’t gotten there.”      The US has also maintained a blockade on Iranian ports for more than a month. Trump said the restrictions would remain until a formal agreement was reached.