The US Treasury slapped sanctions on two Iranian companies deeply involved in a maritime extortion racket that coerces vessels into buying insurance just to pass through the Strait of Hormuz, demanding payment in cryptocurrencies. This bold move on July 29 aims at entities linked to the Islamic Revolutionary Guard Corps (IRGC), exposing a complex scheme where Iran manufactures risks and then charges ships to insure against those very dangers.
The Strait of Hormuz is a vital artery for global oil trade, channeling about 20 percent of the world’s oil daily. Iran, positioned on its northern shore, leverages this strategic chokepoint to its advantage. The sanctioned firms, the Persian Gulf Marine Insurance Company (PGMIC) and HormuzSafe Marine Services Authority, allegedly sell insurance policies that cover threats created by the IRGC itself, such as vessel seizures or harassment by Iranian naval forces.
What makes this case standout is the use of digital assets for payments, a clear attempt to bypass traditional financial systems and US sanctions. By accepting crypto, Iranian entities avoid banks where the sanctions bite hardest, effectively creating a shadow financial network outside the reach of Western oversight. Reports dating back to May 2026 had already hinted at this Bitcoin-backed insurance system, framing HormuzSafe as part of a broader push to normalize digital payments within Iran’s sanctioned economy.
The crackdown was executed under Executive Order 13902, which targets Iran’s financial sector alongside other recent sanctions on shipping companies linked to its petroleum industry across China, Hong Kong, and the Marshall Islands. This reflects an escalation in efforts to choke off Iran’s revenue streams by disrupting its evolving crypto ecosystem.
This material is informational and does not constitute financial advice.
