Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Iran Conflict 2026
9JUN

Treasury names a Hormuz insurance racket

3 min read
10:36UTC

OFAC designated the two bodies selling IRGC-approved transit cover in the Strait of Hormuz, payable in Bitcoin, alongside four shadow-fleet tankers and a front that crowdsourced targeting tips.

ConflictAssessed
Key takeaway

Tehran collects a Hormuz toll through insurance paperwork, with no gunboat and no signed agreement.

The Office of Foreign Assets Control (OFAC), the US Treasury unit that administers American sanctions, designated Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority on Wednesday 29 July under Executive Order 13902⁠1. The scheme those two bodies run makes cover compulsory: a vessel transiting the Strait of Hormuz must buy IRGC-approved insurance against risks Iran itself creates. HormuzSafe accepts Bitcoin and other digital assets, and the sanctioned financier Babak Zanjani promoted it on social media.

HormuzSafe collects without putting a boarding party on a single deck. No port accepts an uninsured hull and no charterer books one; cargo owners, classification societies and flag states all demand valid cover before a ship moves. Forcing transits to buy Iranian-approved paper therefore extracts payment through the commercial liability chain, at the point where a refusal costs the shipowner the voyage rather than the ship. Washington's answer to a Hormuz toll has been that nobody may charge for passage at all, and this scheme collects without ever putting the question to a negotiator.

OFAC named eight shadow-fleet tankers in the same action, hulls that disguise Iranian crude through flag-of-convenience registration, opaque ownership and ship-to-ship transfers, among them WELL SAIL, LILY, AL SALMI and BREEZE V. That takes Treasury past 100 vessels designated this year⁠2. A separate release the following day, under Executive Order 13224, named six targets across China, India, Russia and Iran⁠3.

DadeNegar Startup Studio neither moves cargo nor sells tickets. The IRGC-affiliated front ran a public website soliciting crowdsourced locations of American and Israeli equipment and relayed strike requests to the Guard⁠4. Iran has used front companies to procure components for decades, and the Zanjani network drew its own designation on 24 July. Buying targeting information from passers-by is a different function from buying centrifuge parts, and it places anyone who photographed a convoy inside the kill chain.

Deep Analysis

In plain English

The US Treasury's sanctions arm, OFAC, added two Iranian shipping insurance companies and eight tankers to its blacklist on 29 July, and an Iranian tech investment firm called DadeNegar Startup Studio the following day. This is part of a long-running effort to stop Iran from selling oil by cutting off the insurance and financial services that let its ships keep operating despite sanctions. The tankers and companies named will struggle to get insurance, dock at most ports, or use the international banking system.

What could happen next?
  • Consequence

    The four newly sanctioned tankers will likely re-flag and seek alternative insurance within weeks, following the pattern of prior 2026 designation rounds.

  • Meaning

    Naming the insurance company directly, rather than only the tankers, targets the mechanism that has let sanctioned vessels keep operating.

First Reported In

Update #164 · The pause ends, and the map moves west

US Department of the Treasury· 31 Jul 2026
Read original →
Different Perspectives
Wang Yi
Wang Yi
China's foreign minister and Djibouti's issued a joint communique on 21 October saying the war should not reach the Horn of Africa and stressing free navigation through Bab al-Mandeb. The text names neither Iran nor the Houthis, and Djibouti hosts China's only overseas military base, opposite the Yemeni coast.
Ministry of External Affairs
Ministry of External Affairs
India's foreign ministry called the attacks on Saudi civilian and energy sites "unacceptable" on 22 October and said they must stop at once. An Indian died at Dammam, Indians were injured there and at Shaybah, and about 4,000 Umrah pilgrims remain stranded by one MP's count.
Iraq
Iraq
Iraq closed the al-Sheeb crossing with Iran to travellers and trucks from 21 October and said other crossings would close gradually. Unlike September's closure, which ended on a staged timetable, this one has none, and Iran's interior ministry said it received no notice.
Abdel Fattah el-Sisi
Abdel Fattah el-Sisi
Egypt's president said on 21 October that Cairo's support would "defend Saudi territory, and does not include an attack on Yemen". Araghchi warned that Egyptian involvement would further complicate the situation, and Cairo's limit matches the one Ankara set on 8 October against attacking another state's soil.
UK Ministry of Defence
UK Ministry of Defence
The MoD said on 20 October that RAF Typhoons over Saudi Arabia will not strike the Houthis, but extended tanker support to Saudi operations including against Houthi targets in Yemen. The tanker line sets no limit on strikes, so British aircraft may now refuel Saudi jets on bombing runs.
Turkey
Turkey
Ankara sent the Mecca Joint Defence Agreement to parliament around 20 October, and its published text treats an attack on one party as an attack on all. Article 16 brings it into force only on the last ratification, so the 5 October invocation in Riyadh could not yet bind Turkey.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.