US sanctions Iran LPG network over shipments to Bangladesh, targets exchange firm
Synopsis
Washington's latest sanctions sweep exposes a UAE-China front-company network that allegedly shipped millions of barrels of Iranian LPG to Bangladesh — mislabelled as Omani fuel — while a parallel crackdown on Geramian Exchange targets hundreds of millions in illicit dollar flows routed through sanctioned Iranian banks. The action signals that US secondary-sanctions pressure is now reaching deep into South Asian energy supply chains.
Key Takeaways
The US Treasury's OFAC on 5 June sanctioned a network accused of exporting Iranian LPG disguised as Omani fuel to Bangladesh and other South and East Asian buyers.
Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust allegedly ran UAE-based front companies — Butani Trading LLC , Dundlod Trading FZE , and ADH Energy FZE — central to the scheme.
Vessel LPG SEVAN reportedly transported 750,000 barrels of LPG to Bangladesh between August and November 2025 ; Dundlod allegedly delivered 22,000 metric tonnes valued at $10.5 million in October 2025 .
Six vessels — MD 23 , GLENDALE , AMIR GAS , GAS LAGOON , MILE , GAZ GMS — were added to the OFAC blacklist.
Iran-based Geramian Exchange was separately sanctioned for allegedly facilitating hundreds of millions of dollars in transactions for Bank Tejarat , Bank Mellat , and Bank Pasargad .
Treasury Secretary Scott Bessent said Treasury will continue to 'sever Iran's shadow fleet, shadow banking networks and access to global trade.'
The United States on Friday, 5 June imposed sweeping sanctions against a network accused of shipping Iranian-origin liquefied petroleum gas (LPG) disguised as Omani fuel to buyers across South and East Asia, including Bangladesh. Separately, Washington also sanctioned an Iranian foreign exchange company accused of moving hundreds of millions of dollars on behalf of sanctioned Iranian banks. The action was announced by the US Department of the Treasury's Office of Foreign Assets Control (OFAC).
How the Network Operated
According to the Treasury Department, Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust ran a network of United Arab Emirates (UAE)-based front companies that exported millions of barrels of Iranian LPG while falsely labelling it as Omani LPG. The network reportedly used front companies in the UAE and China, foreign bank accounts, and vessels linked to Iran's so-called shadow fleet to evade sanctions and conceal the fuel's origin.
The companies named by OFAC include Butani Trading LLC, Dundlod Trading FZE, and ADH Energy FZE.
Bangladesh as a Key Destination
The Treasury Department identified Bangladesh as a significant destination for several of the shipments. In March 2026, ADH Energy FZE was allegedly used to sell and export millions of barrels of Iranian LPG to end users in Bangladesh. The vessel LPG SEVAN reportedly transported 750,000 barrels of LPG to Bangladesh between August and November 2025.
Dundlod Trading FZE allegedly delivered 22,000 metric tonnes of LPG to Bangladesh in October 2025, valued at approximately $10.5 million, using the same vessel. The company also allegedly used a second tanker, GAS ZEINA, for multiple LPG shipments to Bangladesh in May 2025.
Vessels and Entities Blacklisted
Several vessels accused of transporting Iranian LPG were added to OFAC's Specially Designated Nationals and Blocked Persons List. These include MD 23, GLENDALE, AMIR GAS, GAS LAGOON, MILE, and GAZ GMS, along with companies linked to their ownership and operation.
Iranian Exchange House Targeted
In a separate but related action, OFAC sanctioned Iran-based Mehrdad Geramian Nik and Partners Company, known as Geramian Exchange, along with its leadership. The Treasury Department said the exchange house held contracts with sanctioned Iranian banks — including Bank Tejarat, Bank Mellat, and Bank Pasargad — and had facilitated transactions involving hundreds of millions of dollars in foreign currency. Treasury described Iranian exchange houses as a key component of the country's sanctions-evasion network, alleging they use brokers, shell companies, and overseas accounts to move funds while concealing links to Iran.
Treasury's Statement
'Iran's economy is floundering and its military is decimated,' Treasury Secretary Scott Bessent said. 'Through Economic Fury, Treasury will continue to sever Iran's shadow fleet, shadow banking networks and access to global trade.' The latest action is part of a broader US campaign to choke off Iranian revenue streams through secondary sanctions on third-country intermediaries.
Point of View
Raising questions about due-diligence gaps in its procurement chains. Washington's move to name specific vessels, tonnages, and dollar values — rather than issuing broad designations — signals a more forensic phase of Iran sanctions enforcement. The parallel targeting of Geramian Exchange also suggests the US is closing the gap between commodity smuggling and the financial plumbing that sustains it. Countries in South Asia that rely on spot LPG cargoes will now face heightened compliance scrutiny from Western banks and insurers, with potential supply and cost consequences that go well beyond the named entities.
NationPress
21 Jul 2026
Frequently Asked Questions
What did the US sanctions on the Iran LPG network involve?
OFAC sanctioned a network of UAE-based front companies accused of shipping millions of barrels of Iranian LPG to Bangladesh and other South and East Asian buyers while falsely labelling it as Omani fuel. The action also blacklisted six vessels and targeted an Iranian foreign exchange company, Geramian Exchange, for facilitating hundreds of millions in illicit dollar transfers.
Why was Bangladesh specifically mentioned in the sanctions action?
The US Treasury identified Bangladesh as a significant destination for several of the sanctioned shipments. The vessel LPG SEVAN allegedly transported 750,000 barrels of LPG to Bangladesh between August and November 2025, and Dundlod Trading FZE allegedly delivered 22,000 metric tonnes valued at $10.5 million in October 2025.
Who are the key individuals sanctioned in this action?
Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust were identified as operators of the UAE-based front-company network. Iran-based Mehrdad Geramian Nik, head of Geramian Exchange, was sanctioned separately for facilitating transactions with sanctioned Iranian banks.
What is Geramian Exchange and why was it sanctioned?
Geramian Exchange, formally known as Mehrdad Geramian Nik and Partners Company, is an Iran-based foreign exchange house. OFAC sanctioned it for allegedly facilitating hundreds of millions of dollars in transactions on behalf of sanctioned Iranian banks including Bank Tejarat, Bank Mellat, and Bank Pasargad.
What is OFAC's 'shadow fleet' and how does it relate to this case?
The term 'shadow fleet' refers to vessels used to transport sanctioned Iranian oil and gas while obscuring their origin through flag changes, false documentation, and intermediary companies. In this case, vessels including LPG SEVAN and GAS ZEINA were allegedly used to move Iranian LPG under the cover of Omani origin certificates, and six such vessels have now been added to OFAC's Specially Designated Nationals list.
