US Sanctions Iranian LPG Smuggling Network and Shadow Banking Exchange House
The Treasury Department’s OFAC designated Mehrdad Geramian Nik, Romina Geramian Nik, Mohammad Shakol Mihandoust, Sarbaz Abdul Zada, Mehrdad Geramian Nik and Partners Company, Sahel Star Oil and Gas Company LLC, Shanghai Qianye Energy Co. Ltd. and associated vessels to the SDN List under IRAN-EO13902. The action blocks the network’s access to the US financial system and prohibits US persons from any dealings with the designated parties.
jns.orgWASHINGTON, June 5, 2026 — The US Treasury’s Office of Foreign Assets Control added eight individuals and entities to its Specially Designated Nationals list for operating an Iranian liquefied petroleum gas smuggling network that disguised Iranian product as Omani LPG and routed it to Asia through UAE and Chinese fronts.
The designations, issued under Executive Order 13902, target Mehrdad Geramian Nik, Romina Geramian Nik, Mohammad Shakol Mihandoust, Sarbaz Abdul Zada, Mehrdad Geramian Nik and Partners Company, Sahel Star Oil and Gas Company LLC, Shanghai Qianye Energy Co. Ltd., and multiple vessels used in the shadow fleet. The same action also updated counter-terrorism designations on related parties.
Scope reaches the core Iranian petroleum revenue stream and shadow banking channels that move foreign currency on behalf of sanctioned Iranian banks. The network funneled LPG exports and hard-currency proceeds that previously evaded sanctions through layered corporate and maritime fronts.
The designations take effect immediately. US persons are now prohibited from any transactions with the blocked parties, and any assets they hold under US jurisdiction are frozen. Foreign parties risk secondary sanctions for continued dealings.
Downstream, the action severs the network’s access to dollar clearing, insurance, and port services that the shadow fleet previously obtained through its Omani and Chinese cut-outs. Iranian banks that relied on the exchange house for foreign-currency settlement lose a key conduit.
Ship owners and commodity traders that touched the vessels must now conduct due diligence or face SDN exposure themselves. The designations also tighten the compliance burden on Asian refiners and UAE intermediaries that handled the disguised cargoes.
This is the latest OFAC action aimed at Iranian energy exports and illicit finance channels. The Treasury statement accompanying the designations noted that Iran’s economy is floundering and its military is decimated, underscoring the priority placed on disrupting remaining revenue streams.
Primary sources: US Treasury — OFAC
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