The United States has sanctioned two Iranian maritime service firms accused of running an Islamic Revolutionary Guard Corps (IRGC)-backed insurance scheme that Washington says extorts commercial vessels transiting the Strait of Hormuz. The designations, announced on 29 July, also cover eight companies operating tankers that allegedly shipped millions of barrels of Iranian crude oil and petroleum products — primarily to China and the United Arab Emirates.

The Two Entities at the Centre

The State Department identified the sanctioned maritime firms as the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority. According to Washington, both entities charged commercial vessels for protection against risks — including the threat of seizure — that Iran itself allegedly manufactured.

'These entities manufacture risk — including the threat of vessel seizures — and then charge commercial vessels for coverage against dangers created by the regime itself, generating revenue that sustains IRGC operations and Iran's broader campaign of regional destabilisation,' State Department spokesperson Tommy Pigott said.

Treasury added that the Persian Gulf Marine Insurance Company brokers policies approved by the IRGC-backed Persian Gulf Strait Authority, which was itself sanctioned in May for supporting the IRGC. HormuzSafe, meanwhile, advertises insurance, traffic control, security, and emergency services for vessels using the waterway and reportedly accepts Bitcoin and other digital assets to sidestep Western sanctions.

Treasury's Rationale

Treasury Secretary Scott Bessent framed the action as a direct response to Iran's attempts to fund the IRGC through international shipping. 'With its economy in freefall and inflation in the triple digits, the regime is desperate for cash,' Bessent said. 'The United States will not allow Iran to hold global commerce hostage or use international shipping to finance the IRGC's terrorism, aggression, and repression.'

The broader action also covers companies based in China, Hong Kong, and the Marshall Islands. The eight tankers linked to them sail under the flags of Barbados, Mozambique, Vanuatu, and the Marshall Islands, while one vessel carries an unknown flag.

The Shadow Fleet: Named Vessels

The Treasury Department named the eight vessels as Well Sail, Lily, Al Salmi, Breeze V, Natsumi, Crystal, Nireta, and Yehope. According to Treasury, these ships transported Iranian oil or petroleum products to China and the UAE between 2022 and 2026.

The State Department described the vessels as part of Iran's 'shadow fleet' — a network Tehran uses to circumvent existing sanctions. The latest designations are said to support US Navy enforcement of a blockade on Iranian ports and coastline. Washington has now sanctioned more than 100 vessels connected to Iran's shadow fleet this year alone.

Wider Strategic Context

This comes amid sustained US pressure on Iran's oil revenues, which Washington views as the primary funding source for IRGC operations across the region. The Strait of Hormuz — through which roughly 20% of global oil supply passes — has long been a flashpoint, with Iran periodically seizing or threatening commercial vessels. Critics argue that the use of flag-of-convenience registrations and cryptocurrency payments has made sanctions enforcement increasingly complex. The latest round signals Washington's intent to close those loopholes, though enforcement against China-bound shipments remains a structural challenge.