On Wednesday, the Trump administration took further steps against Iran's efforts to manage and profit from shipping in the Strait of Hormuz. They imposed sanctions on two organizations that the U.S. Treasury claims were set up to provide insurance and maritime services related to Iran's shipping activities.
The U.S. Treasury's Office of Foreign Assets Control (OFAC) designated the Persian Gulf Marine Insurance Company (PGMIC) and the HormuzSafe Marine Services Authority as part of a larger initiative aimed at what the Treasury calls Iran's "Strait of Hormuz extortion network."
This action is part of Washington's ongoing efforts to hinder Iran's attempts to gain control over commercial shipping traffic in one of the world's most crucial waterways.
According to the Treasury, HormuzSafe was created under Iran's Ministry of Economy to provide services such as traffic management, security, emergency response, and insurance for ships passing through the Strait of Hormuz. Treasury also noted that PGMIC was established under Iran's Central Insurance organization to offer coverage for maritime risks linked to the regime's operations.
Secretary of the Treasury Scott Bessent stated, “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.”
These sanctions expand upon last month's designation of the Persian Gulf Strait Authority (PGSA), an Iranian organization accused of trying to create a system for regulating shipping through the strait and charging fees from international vessels.
Together, these three organizations make up what the Treasury sees as an integrated structure that supports Iran’s control over maritime traffic. This latest round of sanctions targets not just Iran's oil exports or shipping fleet, but also the administrative, operational, and financial bodies that could enable a comprehensive transit regime.
In announcing the sanctions, Treasury stated, “We are committed to disrupting every element of Iran’s efforts to exploit one of the world’s most critical maritime chokepoints for financial and political gain.”
The U.S. State Department added that the sanctions aim to dismantle Iran's attempts to profit from instability in the Strait of Hormuz. It mentioned that the newly designated entities provided coercive "insurance" and maritime services, charging commercial ships for protection against risks posed by Iran itself, while also supporting IRGC operations.
State Department spokesperson Thomas Pigott noted, “Today’s designations support the U.S. Navy’s enforcement of a blockade on Iranian ports and coastline and contribute to an ongoing campaign that has sanctioned over 100 vessels this year. The U.S. will keep holding Iran accountable for weaponizing vital international waterways and evading sanctions through shadow fleet operations and deceptive financial schemes.”
These sanctions may heighten concerns among shipowners, insurers, and financial institutions regarding dealings with Iranian entities involved in transit services through the Strait of Hormuz. Under U.S. sanctions, engaging with designated entities can pose significant compliance risks, even if transactions occur outside the U.S.
On Wednesday, U.S. Central Command "fact checked" Iran's claims that commercial ships should follow routes designated by the Islamic Revolutionary Guard Corps (IRGC). CENTCOM asserted, “The Strait of Hormuz is an international waterway. The IRGC has no authority to dictate routes for free and open traffic flow,” in a post on X.
They also claimed that their forces have helped nearly 1,000 vessels carrying 500 million barrels of crude oil safely pass through the strait since early May.
These sanctions come alongside a more assertive U.S. military campaign to enforce the renewed blockade of Iran. CENTCOM announced that over 20 U.S. Navy warships are operating in the Middle East to support this mission, emphasizing the "strict enforcement" of the blockade. Since its reinstatement, U.S. forces have redirected 18 commercial vessels, disabled two, and boarded two to ensure compliance.
This decision by the Treasury is part of President Trump’s strategy that combines military pressure with economic sanctions. During an appearance on Fox & Friends, Trump claimed that the U.S. Navy effectively controls the Strait of Hormuz, disregarding Iranian assertions of authority over the waterway. He declared, “Iran doesn’t control the Strait. We control the Strait,” warning that pressure would increase if Tehran did not reach a new nuclear agreement.
Commercial shipping through the Strait of Hormuz remains below normal levels due to ongoing conflicts involving the U.S., Israel, and Iran.
This latest move indicates that the U.S. intends to challenge not only Iran’s military threats to navigation but also its attempts to establish revenue-generating commercial or financial mechanisms related to shipping in the strait.