US sanctions 'Persian Gulf Strait Authority' that manages Hormuz
What's the story
The United States has imposed sanctions on the Persian Gulf Strait Authority, a body Iran set up to manage passage through the Strait of Hormuz. The move was announced by the US Treasury Department on Wednesday. "This entity spearheads an Iranian-controlled scheme that flagrantly violates international law and US sanctions," it said. The strait is a vital global trade route, accounting for about 20% of the world's oil supply.
Targeted entities
Persian Gulf Strait Authority sanctioned
The sanctions are aimed at the Persian Gulf Strait Authority and anyone who works with it. The Treasury Department said that anyone cooperating with the body may be providing support to and receiving services from the Islamic Revolutionary Guard Corps (IRGC) and may be sanctioned. "The Iranian military's latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash," Treasury Secretary Scott Bessent said in a statement.
Economic impact
Iran's control over strait raises global economic concerns
Iran's control over the Strait of Hormuz has caused global economic concerns. The strait was closed after the US and Israel launched a war against Iran on February 28. This closure has led to skyrocketing energy prices and other costs, putting political pressure on President Donald Trump and Republicans ahead of midterm congressional elections.
Defense stance
Revolutionary Guard defends oversight of strait
Iran's Revolutionary Guard has defended its oversight of the Strait of Hormuz, claiming that only its designated corridor is safe for transit. Ships that deviate from this path face attacks and risks. In turn, the US has blockaded Iranian ports for over a month, a move Trump said "will remain in full force and effect until an agreement is reached, certified, and signed."
Treasury
US prepared to take action against others
The US Treasury Department said it will continue to vigorously target both traditional sanctions evasion schemes and the exploitation of digital assets while continuing to freeze funds "stolen from the Iranian people." "Treasury is also prepared to take action against any foreign company supporting illicit Iranian commerce, including airlines, and, as necessary, may impose secondary sanctions on foreign financial institutions that facilitate Iran's activities," it said.