As Talks Drag On, U.S. Issues New Sanctions on Iran’s Strait of Hormuz Authority
Treasury targets newly established transit body as nuclear talks stall and overnight military exchanges escalate across the Gulf region
An MH-60R Sea Hawk helicopter approaches USS Delbert D. Black after patrolling the Arabian Sea in support of the U.S. blockade against Iran. Text and photo credit: CENTCOM official X account
The United States has sanctioned the Persian Gulf Strait Authority, a body Iran established to manage vessel transit through the Strait of Hormuz, the U.S. Treasury Department said on Wednesday, escalating pressure on Tehran amid stalled negotiations over its nuclear program and a sharp overnight escalation in hostilities.
The authority was created earlier this month to oversee and process requests for passage through the strategically vital waterway, through which roughly one-fifth of global oil and natural gas supplies flow. The Treasury said the system is part of a broader Iranian effort to assert tighter control over maritime traffic and extract payments under the guise of regulatory oversight.
The Treasury warned that any party cooperating with the authority may be deemed to be providing material support to, or receiving services from, Iran’s Islamic Revolutionary Guard Corps (IRGC), which is already designated by the United States as a Foreign Terrorist Organization and subject to sweeping sanctions.
“The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash,” Treasury Secretary Scott Bessent said.
The sanctions are part of the Economic Fury campaign, the broader U.S. effort targeting Iran’s oil exports, shadow banking networks, and sanctions evasion mechanisms, and complement the military Epic Fury campaign. Treasury officials warned that financial institutions and maritime operators risk secondary sanctions if they engage with the designated entity.
The move comes against the backdrop of rapidly escalating military and maritime activity overnight. The U.S. military carried out strikes targeting Iranian drone activity near the Strait of Hormuz, including the destruction of multiple attack drones and a ground control station in Bandar Abbas, according to official statements. Iranian media and IRGC-linked statements said the Revolutionary Guard responded by targeting a U.S. airbase, marking another direct exchange in the widening confrontation.
CENTCOM said that, as of May 27, 109 commercial vessels have been redirected to ensure compliance with maritime security measures in the region, underscoring the operational impact on shipping flows through and around the Strait of Hormuz.
The escalation follows a fragile ceasefire framework in place since April, now under renewed strain as both sides continue to trade strikes across the Gulf region. The Strait of Hormuz remains central to the confrontation, with shipping disruption and military activity continuing to elevate global energy market risk and regional instability.