New Delhi: America has once again adopted a tough stance regarding Iran. This time the target is the alleged network which is accused of marketing Iranian LPG (Liquefied Petroleum Gas) to international markets by showing it as fuel for other countries. The US administration claims that through this network the real identity of Iranian gas was being hidden and complex business methods were being used to avoid sanctions.
The US Treasury Department’s Office of Foreign Assets Control (OFAC) issued a detailed statement on Friday announcing sanctions on several companies, ships and individuals. American officials say that these institutions and people were allegedly helping in bypassing the sanctions imposed on Iran. According to America, this network used to supply LPG of Iranian origin to various countries by presenting it as Omani fuel. Through this alleged activity, an attempt was made to hide the actual origin of the fuel, so that international monitoring and sanctions could be avoided.
Today, Treasury’s Office of Foreign Assets Control is designating a network of individuals, entities, and vessels responsible for shipping hundreds of millions of dollars’ worth of Iranian-origin liquid petroleum gas⸺intentionally disguised as Omani LPG⸺to end users in South…
— Treasury Department (@USTreasury) June 5, 2026
Fuel was reaching South and East Asia
The US administration claims that through this network LPG was being delivered to many countries of South and East Asia including Bangladesh. The investigation also revealed that the identity of the fuel was hidden by altering the business documents and supply chain. Washington believes that such activities weaken the effectiveness of sanctions and give Iran an opportunity to raise revenue through alternative means.
Use of front companies and foreign accounts
According to US officials, this network used front companies established in many countries to hide its activities. Particularly, there have been allegations of business transactions being carried out through some companies based in UAE and China. Apart from this, foreign bank accounts and so-called "shadow fleet" Ships belonging to the Indian Navy were also used. The US administration says that through these ships an attempt was made to hide the real origin of the goods and avoid sanctions.
Foreign exchange company also under the ambit of action
America has not limited its actions only to energy business. An Iranian foreign exchange company has also been included in the sanctions list. It is alleged that this company helped in conducting large-scale financial transactions on behalf of banned Iranian banks. US officials believe that such financial networks help Iran continue economic activities despite international sanctions.
Comments are closed.