The United States on Tuesday broadened its sanctions against Iran’s oil industry, specifically targeting the network of petroleum shipping magnate Mohammad Hossein Shamkhani, according to the Treasury Department.

Treasury Secretary Scott Bessent announced that the department had also frozen $130 million held in digital wallets linked to Iran’s central bank, striking a sector that has seen heightened activity since the war began.

The new measures follow a fourth consecutive day of US strikes against Iran and the reimposition of a naval blockade. In response, Iran has been hitting ships in the Strait of Hormuz, the International Maritime Organization reported.

Iran began blocking the strait—a vital waterway for energy transit—after US-Israel attacks in February. Washington had initially imposed a blockade on Tehran’s ports from mid-April to mid-June.

“This action is part of Treasury’s ongoing efforts to ramp up economic pressure on the Iranian regime after it resumed destabilizing attacks in the Strait of Hormuz,” the Treasury Department said in a Tuesday notice.

The department alleged that the Shamkhani network remains a key force behind Iran’s oil exports and has expanded into global commodities trading. The latest sanctions target more than 50 individuals, entities, and vessels accused of enabling Iranian authorities to profit.

The Treasury added that it has now sanctioned over 200 individuals, entities, and vessels operating under Shamkhani’s patronage.

Shamkhani is the son of security official Ali Shamkhani, an advisor to Iranian Supreme Leader Ali Khamenei. Both were killed on February 28, the first day of US-Israeli attacks and the start of the Middle East war.

Bessent said the department “sanctioned multiple wallets tied to the Central Bank of Iran, resulting in the freeze of over $130 million.”

“We will continue to aggressively follow the money and deny the Iranian regime access to the proceeds of its illicit revenue schemes,” he said in a post on X.

Experts say digital asset platforms have been used to circumvent sanctions on Iran’s Revolutionary Guards and as a financial safe haven for civilians affected by soaring inflation. Iran has largely been cut off from the global financial system due to years of US and European sanctions predating the war. Cryptocurrency has offered a path for citizens and businesses to transact with the rest of the world.

Source: AFP