The Treasury Department has enforced sanctions on the Persian Gulf Strait Authority (PGSA) of Iran, the body that manages the operations of the Strait of Hormuz.
The Department emphasized that the Strait Authority is a key player in an Iranian-controlled scheme that flagrantly violates international law and U.S. sanctions. The Treasury warned that any engagement with this authority could be seen as backing and receiving services from Iran’s Islamic Revolutionary Guard Corps (IRGC), thus making them susceptible to sanctions.
The latest action reinforces earlier warnings that companies and vessels could face sanctions for complying with Iranian demands tied to passage through the Strait of Hormuz, including paying “tolls” through cash, digital assets, barter-style swaps, charitable donations, or sharing sensitive vessel data.
Treasury Secretary Scott Bessent commented, “The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash.” He added that the U.S., through Economic Fury, has imposed a financial stranglehold on the world’s leading state sponsor of terrorism.
US Strikes Deepen Iran Tensions
Last week, Sen. Tom Cotton reportedly urged Bessent to impose sanctions on any country or entity helping Iran’s new Strait of Hormuz toll system, including Oman. Cotton called for immediate sanctions on the Persian Gulf Strait Authority (PGSA), its officials, and anyone processing or facilitating toll payments, arguing that recognizing the authority undermines freedom of navigation and financially supports a sanctioned terrorist entity.
On Wednesday, the U.S. reportedly struck an Iranian drone ground control station in Bandar Abbas that was allegedly preparing to launch attack drones, and also shot down four drones near the Strait of Hormuz.
The official described the actions as measured and defensive, aimed at maintaining the ceasefire. Earlier Monday, U.S. Central Command (CENTCOM) said it also targeted Iranian missile launch sites and vessels allegedly trying to deploy mines near key waterways.
Ebrahim Azizi, who heads Iran’s National Security Committee in parliament, criticized President Donald Trump on X, saying Trump was alternating between threats and calls for negotiations as he tried to escape what Azizi described as a “strategic deadlock” with Iran.
U.S. military action near the Strait of Hormuz on Wednesday had pushed oil prices above $90 a barrel. At the time of writing, WTI crude oil was trading 2.75% higher at $91.16 per barrel.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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