U.S. Sanctions Two "Insurers" for Handling Iran's Hormuz Transit Fees

The U.S. government has released a new round of sanctions targeting Iran's attempt to set up a transit fee structure for the Strait of Hormuz.

In a statement Wednesday, the U.S. Treasury said that it is placing sanctions on two companies that it believes are at the center of the Islamic Revolutionary Guard Corps' "insurance" business, which protects ships from the IRGC's own attacks. The two companies are the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority.

The Treasury says that the two entities are designed to hide what amount to safe-passage transit fees, and use digital currencies to evade sanctions enforcement. Cryptocurrency payments to the IRGC have previously been reported in connection with transits through the Iranian-controlled northern half of the strait.

The Persian Gulf Marine Insurance Company has a low profile, but HormuzSafe has actively advertised its services. Its site presents it as a modern "digital insurance" company, purporting to offer shipping companies legitimate services and coverage for transits through the strait - for example, emergency response and security arrangements. It offers owners the opportunity to "sail through with complete confidence" with a "99.9 percent safe transit rate." It accepts payments in Bitcoin (via Lightning Network), Tether, USDC, credit cards and wire transfers. It was launched in May, and claims to have already served 15,000 vessels - 10 times the number of ships trapped in the Gulf by the closure of the strait.

"Hormuz Safe generates revenue on behalf of the IRGC in an attempt to give the regime tighter control over shipping activity," warned the Treasury.

Legitimate marine insurers are aware of the compliance risks of doing business with IRGC front companies. Going forward, shipowners may risk losing Western insurance cover if they are found to have made payments to Iran for safe passage, according to the underwriters at Lloyd's Market.

In addition to the two payment-collection firms, Treasury named eight more tankers for working for Iran. These include the Chinese-owned Well Sail, Lily, Al Salmi, Breeze V, Natsumi and Crystal, plus the Marshall Islands-owned Nireta and Yehope. Treasury also blacklisted the holding companies that are the listed owners of these vessels.