Washington Sanctions Iran's Strait of Hormuz Authority, Calling It a Global Extortion Racket

The Trump administration has sanctioned Iran's newly created Persian Gulf Strait Authority, the body Tehran set up to control passage through the Strait of Hormuz, in the latest escalation of its economic pressure campaign against Iran.

Treasury Secretary Scott Bessent framed the move in blunt terms. "The Iranian military's latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash," he said in a statement.

The sanctions target the Persian Gulf Strait Authority and any person or entity cooperating with it. The agency, announced earlier this month, approves transit through the strait and charges tolls that could reach as high as $2 million per vessel. Any company or individual doing business with the authority now risks being pulled into Washington's sanctions net.

Iran's powerful Revolutionary Guard has defended the oversight arrangement, saying the only safe route for transit through the critical waterway is through the corridor it has designated, and warning that ships deviating from that path face attacks and other risks.

The stakes are enormous. Until the US-Israeli war against Iran began on February 28, roughly 25% of the world's seaborne oil trade and 20% of global liquefied natural gas passed through the strait. Since Iran closed the strait, the IRGC has boarded and attacked merchant ships and laid sea mines, prompting shipping firms to suspend operations entirely. At least 17 merchant vessels have been damaged, two captured, and 12 seafarers killed or reported missing.

The sanctions were announced the same evening US forces carried out strikes on an Iranian military facility after downing Iranian attack drones. They are the latest in a dual-track strategy Washington has pursued since the war began, combining military action with economic pressure to force Tehran into a deal that would end the conflict and reopen the waterway.

Rising energy prices and broader economic costs from the strait's closure have heaped political pressure on Trump and Republicans ahead of the November midterm elections. Trump has said a deal with Iran is imminent. Talks remain ongoing.