The United States has alerted shipping companies that they may face sanctions if they make payments to Iran for safe passage through the Strait of Hormuz.
This warning, issued by the US Office of Foreign Assets Control on Friday, intensifies the already simmering tensions between the US and Iran regarding control over this crucial shipping route.
Typically, around one-fifth of the world’s oil and natural gas trade flows through the Strait, which sits at the entrance of the Persian Gulf.
Since the outbreak of conflict on February 28, following military actions from the US and Israel, Iran has effectively closed the strait to regular traffic through attacks and threats against vessels.
In response, Iran has begun redirecting some ships to alternative, safer routes nearer to the coastline, sometimes charging for this service.
This effort has drawn the attention of US authorities, as it resembles a kind of “tollbooth” operation.
OFAC’s warning indicates that requests for payment might come in various forms, including not just cash, but also digital assets and things like charitable donations made at Iranian embassies.
The agency made it clear that these payments could pose risks, regardless of how they are processed.
The US has reacted to Iran’s blockade of the Strait by enforcing its own naval blockade since April 13, which involves preventing Iranian tankers from departing, thereby limiting Iran’s oil revenues that are crucial for its struggling economy.
According to US Central Command, 45 commercial vessels have been instructed to turn back since the blockade began.
This warning followed President Trump’s recent dismissal of Iran’s proposal to end the hostilities between the two nations.
At the White House, Trump commented, “They want a deal, but I’m not happy with it, so we’ll see what happens,” although he didn’t specify what he found lacking in Iran’s offer.
He did, however, express a level of dissatisfaction with Iranian leadership, describing it as “very disjointed” and noting that although there’s a desire to negotiate, the situation seems chaotic.
Iran reportedly shared their proposals with Pakistani mediators on Thursday night, according to state media IRNA.
While an uneasy ceasefire has been in place for three weeks, both sides have made accusations of breaches.
The ongoing conflict is putting additional strain on the global economy, leading to rising prices and shortages in fuel and related products.
Despite Trump canceling a special envoy’s trip to Pakistan last week, phone negotiations have continued.
This week, Trump also unveiled plans to reopen a key corridor for US allies in the Gulf to export oil and gas.
Meanwhile, Iranian Foreign Minister Abbas Araghchi updated various foreign ministers in the region on Iran’s initiatives to conclude the conflict and engaged in talks with EU foreign policy chief Kaja Kallas, who is coordinating with Gulf states.
