The US Treasury Department imposed sanctions on June 5 against a network of individuals, entities, and vessels involved in smuggling Iranian-origin liquefied petroleum gas (LPG) disguised as Omani LPG to South and East Asia [1, 2, 3]. The network included 12 sanctioned entities—five based in the Marshall Islands, four in the UAE, and one in China—and six LPG tankers, with four flying Panama flags among them [1, 3].
Authorities said the smuggling operation used front companies in the UAE and China, leveraged foreign bank accounts, and operated a "shadow fleet" to transport millions of barrels of LPG while concealing its Iranian origin to evade US sanctions [1, 4, 5, 2, 3]. The value of the smuggled LPG is estimated in the hundreds of millions of dollars [4, 2, 3].
The US also targeted an Iranian exchange house, Mehrdad Geramian Nik and Partners Co, and its leadership for facilitating hundreds of millions of dollars in foreign currency transactions on behalf of sanctioned Iranian banks [1, 4, 5, 2, 3].
US Treasury Secretary Scott Bessent said, "Treasury will continue to sever Iran's shadow fleet, shadow banking networks, and access to global trade" [1]. He added, "Iran’s economy is floundering and its military is decimated. Through Economic Fury, Treasury will continue to sever Iran’s shadow fleet, shadow banking networks, and access to global trade" [2].
The sanctions are part of the US government's "Economic Fury" campaign aimed at maintaining maximum pressure on the Iranian regime and cutting off funds used for weapons development, support for terrorist proxies, and regional aggression, according to US State Department Chief Deputy Spokesperson Pigott [4].
Since late February 2026, the US has intensified sanctions on Iran, following a joint US-Israel attack against Iranian targets [4, 5].
The latest sanctions target the network and vessels involved in disguising Iranian LPG shipments as Omani origin to disrupt Iran's ability to access global trade and finance. The Treasury has signaled continued efforts to identify and sanction similar networks linked to Iran's illicit smuggling activities.
