US sanctions Iranian LPG smuggling, shadow banking networks
The US Treasury on Friday sanctioned a network of individuals, companies and vessels accused of smuggling Iranian LPG to Asia by disguising it as Omani fuel, in the latest move under Washington’s “Economic Fury” pressure campaign against Tehran.
The Treasury Department said the network used front companies in the United Arab Emirates and China, foreign bank accounts and Iran’s shadow fleet to move millions of barrels of Iranian-origin LPG while concealing its source and evading US sanctions.
“Iran’s economy is floundering and its military is decimated,” Treasury Secretary Scott Bessent said, adding that the department would continue targeting Iran’s shadow fleet, shadow banking networks and access to global trade.
The sanctions target Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust, also known as Haji Shakoor, whom Treasury accused of operating UAE-based front companies that exported millions of barrels of Iranian LPG to South and East Asia. Those companies include Butani Trading LLC, Dundlod Trading FZE and ADH Energy FZE.
Treasury said ADH Energy FZE was used in March 2026 to sell and export millions of barrels of Iranian LPG to Bangladesh. It also cited the LPG SEVAN, saying the vessel transported 750,000 barrels of LPG to Bangladesh between August and November 2025.
The department also sanctioned several LPG tankers, including MD 23, GLENDALE, AMIR GAS, GAS LAGOON, MILE and GAZ GMS, saying they had transported hundreds of thousands to millions of barrels of Iranian LPG in recent years.
In a parallel action, OFAC designated Iranian exchange house Mehrdad Geramian Nik and Partners Company and its leadership, accusing them of moving hundreds of millions of dollars in foreign currency on behalf of sanctioned Iranian banks. Treasury said Iran’s foreign exchange system relies on brokers and front companies abroad to conceal Iranian links and bypass sanctions.
The sanctioned exchange house had contracts with Bank Tejarat, Bank Mellat and Bank Pasargad, and by early 2026 held tens of millions of dollars in foreign currency on behalf of sanctioned Iranian bank customers, Treasury said.
The move blocks any US-based property of the sanctioned individuals and entities and generally bars US persons from dealing with them. Treasury warned that foreign persons and financial institutions could also face sanctions exposure for activity involving blocked parties.
