OFAC sanctions Iranian LPG-smuggling and shadow-banking network, blocks six tankers in 'Economic Fury' action

On June 5, 2026, the U.S. Treasury's OFAC designated a network shipping hundreds of millions of dollars of Iranian-origin liquefied petroleum gas (LPG) disguised as Omani fuel, the latest tranche of the Trump administration's 'Economic Fury' campaign (press release sb0524). The action, taken under E.O. 13902 targeting Iran's petroleum, petrochemical and financial sectors, blocked six LPG tankers — named in reporting as MD 23, GLENDALE, AMIR GAS, GAS LAGOON, MILE and GAZ GMS — plus the LPG SEVAN, which carried roughly 750,000 barrels to Bangladesh between August and November 2025.

Designated individuals included Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust (aka Haji Shakoor). Front and trading companies hit included Butani Trading LLC, Dundlod Trading FZE and ADH Energy FZE, alongside the exchange house Mehrdad Geramian Nik and Partners Company, which OFAC said moved hundreds of millions of dollars and held tens of millions in foreign currency in early 2026 on behalf of sanctioned Iranian lenders Bank Tejarat, Bank Mellat and Bank Pasargad. The network used UAE- and China-based front companies, foreign bank accounts and Iran's shadow fleet to conceal Iranian origin.

Treasury framed it as building on prior 'Economic Fury' designations of Radin Exchange, Arz Iran Exchange, Opal Exchange and Amin Exchange. The action tightens the maximum-pressure squeeze on Tehran's revenue used to fund proxies and weapons, and raises secondary-sanctions exposure for South/East Asian LPG buyers and any maritime, insurance or banking counterparties touching the blocked vessels.