The US Treasury has intensified its sanctions campaign against Iran by hitting two insurance firms and eight tankers tied to an alleged coercive insurance scheme benefiting the Islamic Revolutionary Guard Corps (IRGC). According to the Office of Foreign Assets Control (OFAC), this racket forces commercial ships to buy IRGC-approved insurance policies to transit the key Strait of Hormuz, a vital artery for global oil supply.
OFAC designated the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority on July 27, with the State Department following on July 29. This move adds to a growing list of over 100 vessels sanctioned in 2026 alone, all linked to Iran’s shadow fleet. The shadow fleet operates by turning off tracking systems, transferring cargo mid-sea, and cycling ownership through shell companies to avoid detection and sanctions.
What stands out is the involvement of digital asset payments within this scheme. Compliance teams in the crypto sector have flagged the use of cryptocurrencies as a tool to bypass sanctions. Six of the newly sanctioned entities are based in China and involved in transporting Iranian crude oil to China and the UAE. The revenue from these operations reportedly ends up funding the IRGC, which the US seeks to isolate financially.
The Strait of Hormuz handles about 20% of the world’s oil exports, making it a strategic choke point. Increased tensions in 2026 have made the US crackdown even more aggressive. Each new sanction complicates the ability of these vessels to dock, refuel, insure, or process payments through global financial networks.
This material is for informational purposes only and does not constitute financial advice.
