U.S. Sanctions Iranian LPG Smuggling Network as Maritime Enforcement Expands

On 5 June 2026 OFAC sanctioned a network moving Iranian LPG to South and East Asia under Omani labels, hitting 12 entities—five in the Marshall Islands, four in the UAE, one in China—six LPG tankers (four Panama-flagged) and exchange house Mehrdad Geramian Nik and Partners Co. The Treasury said the network used front companies, foreign bank accounts and Iran’s “shadow fleet” to ship millions of barrels worth hundreds of millions of dollars.

ReutersUS issues sanctions on network ‘smuggling’ Iranian LPGThe Straits Times

Operators Sarbaz Abdul Zada (Afghan) and Mohammad Shakol Mihandoust (Turkish) ran UAE firms Butani Trading LLC, Dundlod Trading FZE and ADH Energy FZE, plus China’s Shanghai Qianye Energy Co. Shipments include 750,000 barrels to Bangladesh on the carrier Sevan and 22,000 metric tons to Bangladesh in October 2025. The exchange house moved hundreds of millions for sanctioned banks Bank Tejarat, Bank Mellat and Bank Pasargad.

Treasury Targets Iranian LPG Smuggling Network as U.S. Pressure Campaign Intensifies

Treasury Secretary Scott Bessent said the sanctions are part of the “Economic Fury” campaign to “sever Iran’s shadow fleet, shadow banking networks, and access to global trade.” State Department spokesperson Tommy Pigott pledged to “continue to pursue individuals and entities that help Iran evade sanctions.” President Donald Trump said Iran is “ready” to negotiate but added he “couldn’t care less” if talks fail.

Jewish News Syndicate

U.S. forces boarded the stateless tanker MT Davina in the Indian Ocean on 5 June, the third interdiction since April 2026. Earlier actions disabled the tankers Lexie, Majestic X and Tifani and redirected 129 commercial ships. The Indo-Pacific Command reaffirmed commitment to “global maritime enforcement to disrupt illicit networks and interdict vessels providing material support to Iran, wherever they operate.”

U.S. Boards Sanctioned Tanker as Iran Maritime Blockade Expands Into Indian OceanFrance 24

By hitting both LPG shipments and the financial channels that launder them, the sanctions aim to cut Tehran’s revenue for weapons development and support to proxies such as Hezbollah. The measures come amid cease-fire talks involving the United States, Israel and Iran, raising questions about their effect on negotiations. The Treasury disclosed the number of sanctioned entities and vessels, but the cargo aboard MT Davina and the full list of front companies remain undisclosed; sources uniformly note four Panama-flagged tankers.

Jewish News Syndicate

• “Through Economic Fury, Treasury will continue to sever Iran’s shadow fleet, shadow banking networks, and access to global trade.” — Scott Bessent, Treasury Secretary

Treasury Targets Iranian LPG Smuggling Network as U.S. Pressure Campaign Intensifies

• “Iran’s economy is floundering and its military is decimated,” — Scott Bessent, Treasury Secretary

Treasury Targets Iranian LPG Smuggling Network as U.S. Pressure Campaign Intensifies

• “We will continue global maritime enforcement to disrupt illicit networks and interdict vessels providing material support to Iran, wherever they operate,” — U.S. Indo-Pacific Command (X post)

France 24

• “These sanctions are part of the Administration’s Economic Fury campaign, which maintains maximum pressure on the Iranian regime and disrupts its ability to generate revenue for weapons development, support for terrorist proxies, and regional aggression,” — Tommy Pigott, State Department spokesperson

Treasury Targets Iranian LPG Smuggling Network as U.S. Pressure Campaign Intensifies