US Cautions Against Iran Strait Payments

U.S. Warns Against Iran Strait Payments The United States Office of Foreign Assets Control (OFAC) on Friday issued an alert, warning shipping companies globally that payments to Iran for passage through the Strait of Hormuz could lead to sanctions. This directive prohibits U.S.

persons and entities from making such payments and indicates that non-U.S. persons risk exposure to sanctions if they engage in these transactions.

The warning specifies that payments can include cash, digital assets, offsets, informal swaps, or other in-kind payments.

The U.S. action follows a significant reduction in vessel traffic through the Strait of Hormuz, a critical global shipping lane. Since a naval blockade was enforced by the U.S. on Iranian ports in February, commercial ship transits have sharply decreased from approximately 3,000 per month to a few daily. Iran has claimed to collect tolls for safe passage, with its parliament indicating the deposit of initial toll revenues into the central bank, though specific details remain unverified.

The U.S. Treasury also imposed sanctions on three Iranian foreign currency exchange houses on Friday, citing their role in converting oil revenue.

This measure aligns with the U.S. strategy to target Iran's revenue-generating sectors, particularly petroleum and petrochemicals.

The ongoing instability in the Middle East, including the U.S. blockade, has led to increased shipping costs and delays, impacting humanitarian aid delivery, with the UNHCR reporting doubled aid delivery costs to Sudan due to rerouting.