US Warns Shipping Firms of Sanctions for Dealing With Iran Over Hormuz Transit, Bans Crypto Payments

The US government warned it would impose tough sanctions on shipping companies that pay Iran or seek security guarantees from Tehran in exchange for passage through the Strait of Hormuz.

The Treasury Department's Office of Foreign Assets Control issued an advisory to the shipping industry on May 2 saying dealings with the Iranian regime carry sanctions risk, according to AP and industry reports. The move is intended to block Iran after it effectively closed the strait following the outbreak of war in late February and sought to collect detour fees from ships.

OFAC specified the forms of payment that could trigger sanctions. They include cash, virtual assets, barter-like offset transactions and in-kind payments. The agency also strictly banned payments routed through Iranian embassies in third countries or indirect support disguised as charitable donations.

The warning leaves shipping companies at risk of US sanctions if they pay transit fees to avoid attacks by Iranian forces. The US is also carrying out a counter-blockade to stop the passage of Iran-linked vessels in response to Tehran's closure of the strait. US Central Command says 45 commercial ships have been turned back so far.