On 27 May 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against Iran’s so-called Persian Gulf Strait Authority, describing it as “a new attempt by Iran’s Islamic Revolutionary Guard Corps (IRGC) to monetize its campaign… by extorting vessels transiting the Strait of Hormuz.”

The Treasury stated that the authority “spearheads an Iranian-controlled scheme that flagrantly violates international law and U.S. sanctions,” and warned that “anyone cooperating with the so-called strait authority may be providing support to and receiving services from the IRGC and may therefore be exposed to sanctions risk.”

The action was taken pursuant to counterterrorism authority (Executive Order 13224) and resulted in the entity being added to the Specially Designated Nationals (SDN) list. This has the effect of blocking any property or interests in property within U.S. jurisdiction and generally prohibiting U.S. persons from engaging in transactions with the designated entity.

In its accompanying statement, the Treasury reinforced the broader policy context, stating that the measure forms part of its “Economic Fury” campaign and warning against compliance with Iranian demands for passage through the Strait of Hormuz, including so-called “toll” payments made through “fiat currency, digital assets, offsets, informal swaps, or other in-kind payments.”

Treasury Secretary Scott Bessent stated:
“The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash.”

The Treasury further indicated that the sanctions action builds on prior guidance highlighting that payments or cooperation linked to transit arrangements in the Strait of Hormuz may create exposure to U.S. sanctions, including for non-U.S. persons through secondary sanctions risk.

Original source:
U.S. Treasury press release https://home.treasury.gov/news/press-releases/sb0507