A merchant vessel passes through an international shipping lane near Hanish Island in the Red Sea off Yemen on Monday (local time). [AFP]
A merchant vessel passes through an international shipping lane near Hanish Island in the Red Sea off Yemen on Monday (local time). [AFP]

The US Treasury Department and Department of State on Wednesday sanctioned two Iranian entities, accusing Iran of effectively extorting "transit fees" from merchant vessels passing through the Strait of Hormuz. The targets are the Persian Gulf Marine Insurance Company (PGMIC) and the HormuzSafe Marine Services Authority (HMSA).

PGMIC was established by Iran's Central Insurance, the country's insurance regulator, and brokers and issues insurance products approved by the Persian Gulf Strait Authority (PGSA), which is backed by the Islamic Revolutionary Guard Corps (IRGC). The Treasury Department contends that the insurance products cover risks such as vessel seizure, and that Iran is in effect forcing ships to purchase the coverage while simultaneously stoking those very risks by threatening to blockade the Strait of Hormuz and attack vessels.

HMSA is an Iranian digital insurance company that advertises insurance, traffic control, security and emergency response services to vessels transiting the Strait of Hormuz. The Treasury Department said the Iranian government created the company, and that it accepts payment in cryptocurrencies such as bitcoin to evade Western sanctions.

Treasury Secretary Scott Bessent said the United States "will not allow Iran to hold global commerce hostage or use international shipping to fund the IRGC's terrorist, aggressive and repressive activities."

Alongside the two entities, the Treasury Department also sanctioned eight operators of "shadow fleets" that transport Iranian crude oil to China and other destinations in circumvention of existing sanctions.


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