The US Treasury Department announced a significant expansion to its sanctions regime against Iran's oil sector on July 15, 2026, taking aim at a network of petroleum shipping magnate Mohammad Hossein Shamkhani and freezing $130 million in digital wallets linked to Iran's central bank.

US Treasury Secretary Scott Bessent said the move was part of the department's efforts to ramp up economic pressure on the Iranian regime after it resumed destabilizing attacks in the Strait of Hormuz. The Treasury Department alleged that Shamkhani's network remains a key force behind Iran's oil exports and has expanded into global commodities trading.

The sanctions targeted more than 50 individuals, entities, and vessels that the Treasury Department said enabled Iranian authorities to reap profit from oil sales. This marks the latest move in a long-running effort by the US to curb Iran's oil exports.

Iran has largely been cut off from the global financial system due to US and European sanctions in place for years before the war. However, cryptocurrency has offered a path for citizens and businesses to transact with the rest of the world.

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.

US forces carried out strikes against Iran on four consecutive days, with Iran hitting ships in the Strait of Hormuz in response. The latest move aims to disrupt Iran's ability to continue these attacks.

Cryptocurrency platforms have been used by Iran to circumvent sanctions placed on its Revolutionary Guards and as a financial safe haven for civilians hit by soaring inflation. The Treasury Department added that it has now imposed sanctions on over 200 individuals, entities, and vessels operating under Shamkhani's patronage.

The sanctions come as tensions between the US and Iran remain high, with the two nations trading blows in the Strait of Hormuz. The situation remains volatile, with both sides dug in and refusing to back down.

Key Facts

  • Over $130 million in digital wallets linked to Iran's central bank has been frozen.
  • More than 50 individuals, entities, and vessels were targeted in the sanctions.
  • The Treasury Department has now imposed sanctions on over 200 individuals, entities, and vessels operating under Shamkhani's patronage.
  • Shamkhani's network remains a key force behind Iran's oil exports and has expanded into global commodities trading.
  • US forces carried out strikes against Iran on four consecutive days in response to attacks