United States Expands Sanctions on Iran's Oil Sector and Freezes $130 Million

The United States expanded sanctions targeting Iran's oil sector on Tuesday, directing new measures at the network of petroleum shipping magnate Mohammad Hossein Shamkhani and freezing $130 million held in digital wallets linked to Iran's central bank.

The Treasury Department sanctioned more than 50 individuals, entities and vessels that it said enabled Iranian authorities to reap profit from oil exports. The department has now imposed sanctions on over 200 individuals, entities and vessels operating under Shamkhani's patronage.

Mohammad Hossein Shamkhani is the son of security official Ali Shamkhani, an advisor to Iranian supreme leader Ali Khamenei. Both were killed February 28, the first day of US-Israeli attacks and the start of the Middle East war. Treasury Secretary Scott Bessent said the department sanctioned multiple wallets tied to the Central Bank of Iran, resulting in the freeze of over $130 million.

"We will continue to aggressively follow the money and deny the Iranian regime access to the proceeds of its illicit revenue schemes," he said in a post on X. The move came after US forces carried out a fourth straight day of strikes against Iran and reimposed a naval blockade. Iran hit ships in the Strait of Hormuz, according to the International Maritime Organization.

Iran started blocking the strait after US-Israel attacks in February. Washington imposed an initial blockade on Tehran's ports from mid-April to mid-June. "This action is part of Treasury's ongoing efforts to ramp up economic pressure on the Iranian regime after it resumed destabilizing attacks in the Strait of Hormuz," the Treasury Department said in a notice Tuesday.

The Shamkhani network remains a key force behind Iran's oil exports and has expanded into global commodities trading, the department said.