US threatens shipping firms with sanctions if they pay Iran tolls

Key developments are emerging from the global stage. US threatens shipping firms with sanctions if they pay Iran tolls 11 minutes ago Share Save Add as preferred on Google Tinshui Yeung The number of vessels passing through the Strait of Hormuz has dropped sharply, with only a handful making the journey each day The US has warned shipping companies they could face sanctions if they pay Iran for safe passage through the Strait of Hormuz. An alert on Friday by the US Office of Foreign Assets Control (OFAC) warned US persons and companies were generally banned from paying Iranian government entities, and non-US persons may risk exposure to sanctions if they pay. "Maritime industry participants involved with vessels calling at Iranian ports face significant sanctions risk under multiple sanctions authorities targeting Iran's shipping sector and ports", OFAC said.

Iran has severely limited traffic through the strait since the war began in February. The US has also enforced a naval blockade on Iranian ports. Iran has called the US interception of ships entering and leaving Iranian ports under the blockade "piracy".

The Details

Tehran says it has collected tolls from ships in order to navigate freely through the strait, with Hamidreza Haji Bababei, deputy speaker of Iran's Parliament, last week claiming the first toll revenue had been deposited with the country's Central Bank. No further detail was provided on the amount of the toll, the method of collection nor who paid it. The could not independently verify this claim.

OFAC's alert said payments could involve cash as well as "digital assets, offsets, informal swaps, or other in-kind payments," including charitable donations and payments at Iranian embassies. The agency warned that non-US persons who pay could also face civil and criminal enforcement liability if payments cause US persons, such as insurers and financial institutions, to violate sanctions. OFAC said it "will continue to aggressively target Iran's main revenue-generating sectors, in particular its petroleum and petrochemical sectors".

The US Treasury also announced sanctions on three Iranian foreign currency exchange houses on Friday, saying they have converted oil revenue into more usable currencies. Treasury Secretary Scott Bessent said his agency would "relentlessly target the regime's ability to generate, move and repatriate funds, and pursue anyone enabling Tehran's attempts to evade sanctions". After the US and Israel attacked Iran on 28 February, Iran has been targeting and striking ships passing through the Strait of Hormuz, including seizing two of them.

The US has also enforced a naval blockade since 13 April, stopping all ships from travelling to or from Iranian ports. Trump had hoped the blockade would put pressure on Iran by targeting its revenue from the tolls and oil sales. US Central Command (Centcom) said on Friday that 45 commercial ships have been told to turn around since the blockade began.

The development has drawn wide international attention, with diplomatic circles watching closely.