The Trump administration has imposed a new round of sanctions on an international network accused of smuggling Iranian liquefied petroleum gas (LPG) and laundering revenue through shadow banking channels. This latest escalation in Washington’s campaign to squeeze Tehran’s energy exports and financial lifelines marks a significant step forward in the US efforts to combat illicit activities.
The sanctions, announced by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), target a network of traders, shipping companies, vessels, and financial intermediaries allegedly responsible for moving hundreds of millions of dollars’ worth of Iranian LPG disguised as exports from Oman and sold to buyers across South and East Asia.
The action comes as the United States continues an increasingly aggressive maritime enforcement campaign against vessels linked to Iran’s energy trade, including multiple recent boardings of sanctioned tankers operating in the Indian Ocean.
According to Treasury, the network relied on front companies based in the United Arab Emirates and China, foreign bank accounts, and vessels associated with Iran’s so-called shadow fleet to conceal the origin of Iranian LPG shipments and evade sanctions.
The Treasury also identified Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust as key operators behind the network. Officials said the pair used a series of UAE-based trading firms, including Butani Trading LLC, Dundlod Trading FZE, and ADH Energy FZE, to arrange shipments of Iranian LPG falsely marketed as Omani product.
One shipment cited by Treasury involved approximately 750,000 barrels of LPG transported to Bangladesh aboard the LPG carrier Sevan. Treasury said the vessel carried Iranian-origin cargoes between August and November 2025.
The sanctions also target Shanghai Qianye Energy Co., Ltd., a China-based company Treasury said was controlled by Mihandoust. In addition, six LPG tankers and their associated owners and operators were designated for sanctions.
These designations highlight the complexity of Iran's energy trade networks and the need for continued international cooperation to combat illicit activities.
The US crackdown on Iranian LPG smuggling highlights the growing importance of effective sanctions in disrupting illicit financial networks and preventing the proliferation of illicit goods.
The US is taking a strong stance against Iran's energy trade, highlighting the need for increased global cooperation to combat illicit activities.
