OFAC Sanctions Firms Over Iran Strait Insurance Scheme

OFAC Sanctions Two Firms Over Iran Strait of Hormuz Insurance Scheme – Bitcoin Payments Cited in Enforcement Action

Key Takeaways

• OFAC sanctioned the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority under Executive Order 13902.
• The US Treasury links both entities to an IRGC-backed scheme targeting vessels transiting the Strait of Hormuz.
• HormuzSafe reportedly accepted payments in Bitcoin and other digital assets.
• Eight shipping companies and eight oil tankers were also designated as blocked property.
• The action follows earlier sanctions on crypto wallets tied to Iran’s central bank and the freezing of $131 million in USDT.

US Treasury Targets Insurance Firms Linked to Strait of Hormuz Transit Scheme

The US Treasury’s Office of Foreign Assets Control has imposed sanctions on two firms accused of supporting a scheme that allegedly required commercial vessels to purchase maritime insurance to transit the Strait of Hormuz. The designated entities are the Persian Gulf Marine Insurance Company and the HormuzSafe Marine Services Authority, also known as Hormuz Safe.

According to the Treasury, the scheme is backed by Iran’s Islamic Revolutionary Guard Corps. Officials state that the arrangement required tankers passing through the strait to pay transit-related charges beginning in April, with fees starting at approximately $1 per barrel. The Treasury said the structure allowed Iran to extract revenue while covering risks that it allegedly created in the region.

Both entities were sanctioned under Executive Order 13902 for operating in Iran’s financial sector. The Persian Gulf Marine Insurance Company was described as issuing policies approved by the Persian Gulf Strait Authority, which OFAC had already sanctioned on May 27. The Treasury said Iran’s insurance regulator created the company.

HormuzSafe Marine Services Authority, according to the department, was developed by Iran’s Ministry of Economy. The firm reportedly offered insurance, traffic control, security, and emergency response services to vessels transiting the strait.

Bitcoin and Digital Asset Payments Highlighted in Treasury Statement

In its announcement, the Treasury stated that HormuzSafe accepted payments in Bitcoin and other digital assets. The department said this formed part of Iran’s efforts to circumvent Western sanctions.

The reference to cryptocurrency payments places the enforcement action within a broader pattern of scrutiny of digital assets in sanctions compliance. In mid-July, the Treasury sanctioned four cryptocurrency wallets linked to Iran’s central bank. At the same time, Tether froze approximately $131 million in USDT held in those addresses.

For crypto users and platforms, such measures underline how digital asset transactions can fall within the scope of sanctions enforcement when linked to designated entities. The Treasury’s latest action explicitly connects maritime insurance services, oil shipments, and crypto-based payments within a single sanctions framework.

Additional Shipping Companies and Tankers Designated

Beyond the two insurance-related firms, OFAC also sanctioned eight shipping companies and identified eight oil tankers as blocked property. The operators are registered in Hong Kong, the Marshall Islands, and China.

According to the Treasury, the vessels transported Iranian crude oil and petroleum products. The agency reported that it has sanctioned more than 100 so-called shadow fleet vessels since January. The latest designations form part of what officials describe as a broader US enforcement effort targeting Iran’s oil exports and related financial channels.

By designating vessels as blocked property, OFAC prohibits US persons from engaging in transactions involving those ships and generally freezes any property or interests in property subject to US jurisdiction.

Treasury Links Scheme to Iran’s Economic Pressures

In its statement, Treasury Secretary Scott Bessent connected the insurance initiative to Iran’s economic conditions. He said the regime was seeking additional revenue amid severe economic strain, referencing triple-digit inflation and a contracting economy.

The Treasury also said the insurance scheme was created to offset revenue lost following Operation Epic Fury. Officials described the arrangement as an illegitimate mechanism to generate income from international maritime traffic in one of the world’s most strategically important shipping corridors.

The Strait of Hormuz is a critical transit route for oil tankers and other commercial vessels. Any additional charges or insurance requirements imposed on ships transiting the area can directly affect shipping operators and energy markets. In this case, US authorities argue that the structure functioned as a revenue extraction tool linked to sanctioned entities.

Our Assessment

The latest OFAC action designates two insurance-related firms, eight shipping companies, and eight oil tankers in connection with an alleged IRGC-backed scheme in the Strait of Hormuz. The Treasury explicitly cited the acceptance of Bitcoin and other digital assets as part of the payment structure, placing cryptocurrency transactions within the scope of the enforcement action. The move follows earlier sanctions on crypto wallets linked to Iran’s central bank and the freezing of $131 million in USDT, indicating continued US focus on digital asset channels associated with sanctioned Iranian entities.