US Imposes Sweeping Sanctions on Iranian LPG Smuggling "Shadow Network"

The U.S. government has imposed sweeping sanctions on organizations that have been smuggling Iranian liquefied petroleum gas (LPG) disguised as products from other countries.

On June 5 (local time), the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that it had placed individuals, entities, and ships—part of a so-called "shadow network"—on its sanctions list for disguising and distributing Iranian LPG worth hundreds of millions of dollars as if it were from Oman.

According to the Treasury Department, these actors used front companies in the United Arab Emirates (UAE) and China, offshore financial accounts, and Iran’s shadow fleet to transport millions of barrels of LPG. They managed to evade U.S. surveillance by manipulating the country of origin. OFAC pointed out that, by leveraging illicit commercial infrastructure and concealing their identities, these actors have served as a financial lifeline for the Iranian regime.

U.S. Treasury Under Secretary Scott Bessent stated, "Iran's economy is currently in a slump, and its military capabilities have also been damaged," emphasizing, "We will continue Operation Economic Fury to thoroughly cut off Iran's shadow fleet, financial networks, and global trade routes."

Additionally, OFAC included the local money exchange 'Mehrdad Geramian Nik and Partners' and its management team, which acted on behalf of Iranian banks and led foreign currency transactions worth hundreds of millions of dollars, in the list of sanctioned entities.

Regarding these measures, the U.S. State Department stated, "Regardless of whether they are foreign companies or financial institutions, those who help Iran evade sanctions will be held accountable," adding, "The international community must actively participate so that Iran cannot secure funds to fuel terrorism, weapons proliferation, and instability in the Middle East."

This content was produced with the assistance of AI translation services.