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

The Trump administration on Friday imposed a new round of sanctions targeting an international network accused of smuggling Iranian liquefied petroleum gas (LPG) and laundering revenue through shadow banking channels, marking the latest escalation in Washington’s campaign to squeeze Tehran’s energy exports and financial lifelines.

The sanctions, announced by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), target a network of traders, shipping companies, vessels, and financial intermediaries allegedly responsible for moving hundreds of millions of dollars’ worth of Iranian LPG disguised as exports from Oman and sold to buyers across South and East Asia.

The action comes as the United States continues an increasingly aggressive maritime enforcement campaign against vessels linked to Iran’s energy trade, including multiple recent boardings of sanctioned tankers operating in the Indian Ocean.

“Iran’s economy is floundering and its military is decimated,” Treasury Secretary Scott Bessent said in a statement. “Through Economic Fury, Treasury will continue to sever Iran’s shadow fleet, shadow banking networks, and access to global trade.”

According to Treasury, the network relied on front companies based in the United Arab Emirates and China, foreign bank accounts, and vessels associated with Iran’s so-called shadow fleet to conceal the origin of Iranian LPG shipments and evade sanctions.

Treasury identified Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust as key operators behind the network. Officials said the pair used a series of UAE-based trading firms, including Butani Trading LLC, Dundlod Trading FZE, and ADH Energy FZE, to arrange shipments of Iranian LPG falsely marketed as Omani product.

One shipment cited by Treasury involved approximately 750,000 barrels of LPG transported to Bangladesh aboard the LPG carrier Sevan. Treasury said the vessel carried Iranian-origin cargoes between August and November 2025. Another shipment involved 22,000 metric tons of LPG delivered to Bangladesh in October 2025.

The sanctions also target Shanghai Qianye Energy Co., Ltd., a China-based company Treasury said was controlled by Mihandoust.

In addition to the trading network, OFAC designated six LPG tankers and their associated owners and operators. The vessels include MD 23, Glendale, Amir Gas, Gas Lagoon, Mile, and Gaz GMS, which Treasury alleges collectively transported millions of barrels of Iranian LPG over several years.

The Treasury also sanctioned Iranian exchange house Mehrdad Geramian Nik and Partners Company and its leadership, accusing the firm of moving hundreds of millions of dollars in foreign currency on behalf of sanctioned Iranian banks including Bank Tejarat, Bank Mellat, and Bank Pasargad.

Treasury said the exchange house formed part of Iran’s broader “shadow banking” system, which uses overseas shell companies, intermediaries, and foreign accounts to facilitate international transactions while obscuring ties to sanctioned Iranian entities.

The latest sanctions form part of the administration’s “Economic Fury” campaign, a maximum-pressure effort aimed at restricting Iran’s ability to generate and move revenue from oil, gas, petrochemical, and financial activities.

The sanctions also underscore the growing role of maritime enforcement in U.S. policy toward Iran. Since April, U.S. military forces have conducted multiple interdictions of sanctioned tankers and expanded operations beyond the Persian Gulf into the wider Indian Ocean as part of efforts to enforce restrictions on Iranian energy exports.

The State Department said the United States would continue to pursue companies, vessels, and financial institutions that facilitate sanctions evasion.

“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,” State Department spokesperson Tommy Pigott said.

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