The United States has imposed sweeping sanctions on a network of companies and vessels in the UAE and China accused of smuggling Iranian liquefied petroleum gas (LPG) disguised as Omani exports to South and East Asia.

The measures, part of Washington’s “Economic Fury” campaign, also target an Iranian currency exchange house accused of facilitating billions in illicit financial transactions.

The US Department of State announced that the sanctions are designed to disrupt Iran’s ability to evade restrictions and fund destabilising activities. According to spokesperson Thomas Pigott, the network relied on front companies in the United Arab Emirates and China, alongside Iran’s shadow fleet of tankers, to conceal the origin of Iranian fuel and bypass sanctions.

The LPG shipments, worth hundreds of millions of dollars, were allegedly funnelled into Asian markets under false documentation.

The Treasury Department confirmed that the latest designations include 12 entities spread across the Marshall Islands, UAE, and China, as well as six LPG tankers, four of which are Panama-flagged. 

These vessels were accused of transporting millions of barrels of Iranian LPG disguised as Omani cargo. Officials identified operators such as Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust, who allegedly used UAE-based trading firms including Butani Trading LLC, Dundlod Trading FZE, and ADH Energy FZE to arrange shipments. One cited case involved 750,000 barrels of LPG delivered to Bangladesh aboard the carrier Sevan in late 2025.

In addition to the shipping network, the sanctions target Mehrdad Geramian Nik and Partners Company, an Iranian currency exchange house accused of moving hundreds of millions of dollars in foreign currency on behalf of sanctioned Iranian banks such as Bank Tejarat, Bank Mellat, and Bank Pasargad. US authorities described this as part of Iran’s “shadow banking” system, which uses overseas shell companies and foreign accounts to obscure links to Tehran and facilitate international transactions.

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

The sanctions are enacted under Executive Order 13902, which targets individuals and entities operating in Iran’s financial and petroleum sectors. The administration insists these measures are critical to preventing Iran from generating revenue for weapons development, supporting terrorist proxies, and fuelling regional instability.

The US has called on the international community to join in enforcing these sanctions, warning that foreign companies and financial institutions facilitating Iran’s evasion tactics will also be held accountable.

This latest move builds on a series of actions by the Office of Foreign Assets Control (OFAC) aimed at dismantling Iran’s energy export lifelines and financial conduits. Officials noted that Iran’s foreign exchange system depends heavily on brokers and Rahbar companies, which exploit overseas shell structures to bypass restrictions.

The announcement follows Iran’s Persian Gulf Strait Authority (PGSA) condemnation of US sanctions on May 30, when Tehran vowed to continue managing vessel passage through the Strait of Hormuz “without interruptions.” The new measures underscore Washington’s determination to escalate economic pressure on Iran while simultaneously targeting its maritime and financial networks.

ANI