US sanctions Iran over Hormuz "extortion" scheme

The United States has imposed sanctions on Iran’s newly established Persian Gulf Strait Authority (PGSA), accusing the entity of helping the Islamic Revolutionary Guard Corps (IRGC) extort commercial vessels transiting the Strait of Hormuz.

In a statement on May 27, the U.S. Department of the Treasury said the PGSA was created by Iran to impose what Washington described as illegitimate tolls and navigation requirements on ships passing through the strategic waterway, Caliber.Az reports. 

According to the Treasury, vessels are required to submit information and follow routes designated by Iran’s IRGC Navy in exchange for what Tehran calls safe passage.

U.S. Treasury Secretary Scott Bessent said the move was part of Washington’s “Economic Fury” campaign aimed at increasing pressure on Iran and cutting off revenue streams used for weapons programs, regional proxy groups, and nuclear activities.

The sanctions were imposed under Executive Order 13224, a U.S. counterterrorism authority targeting entities accused of supporting terrorism. Washington said any individual or company cooperating with the PGSA could face sanctions risks for allegedly providing support to the IRGC, which the United States designates as a Foreign Terrorist Organization.

The Treasury also warned that foreign financial institutions facilitating transactions linked to the sanctioned entity could face secondary sanctions.

By Sabina Mammadli