It is no good if Iran is ‘tolled’: America warns shipping companies of sanctions, tension increases on Strait of Hormuz

Dubai: The US has warned shipping companies that they could face sanctions if they pay Iran for safe passage through the Strait of Hormuz. The warning given by the US Office of Foreign Assets Control (OFAC) on Friday has further increased the pressure amid the ongoing conflict between the US and Iran over control of the Strait of Hormuz. Normally in peacetime about one-fifth of the world’s oil and natural gas trade passes through the Strait of Hormuz. Iran virtually closed the strait to normal traffic, threatening and attacking ships after the US and Israel launched the war on February 28.

Later it began to provide safe passage by diverting some ships to alternative routes closer to its coastline, and sometimes charged a fee for this service. This “tollbooth”-like system is the main focus of America’s sanctions warning.

According to the OAFC, demands for payment may include not only cash but also “digital assets, offsets, informal swaps, or other types of in-kind payments,” including charitable donations and payments made at Iranian embassies. OFAC said it is issuing this warning to make US and non-US persons aware that they may face sanctions if they seek payments for or guarantees of safe passage to the Iranian regime. He also clarified that these risks apply to any method of payment.

The United States imposed a naval blockade in response to Iran’s closure of the strait on April 13, preventing any Iranian oil tankers from leaving and depriving Iran of oil revenues needed to shore up its weak economy. US Central Command said 45 commercial ships had been asked to turn back since the blockade began.