The US Treasury warns shippers that paying tolls to Iran for Strait of Hormuz passage risks sanctions, regardless of payment method.

NEW YORK: Any shippers paying tolls to Iran for passage through the Strait of Hormuz are at risk of punitive sanctions, the United States (US) Department of Treasury warned on Friday, reported Xinhua.

The Office of Foreign Assets Control (OFAC) under the department said the US is aware of “Iranian threats to shipping” and demands for payments to receive safe passage through the strait, and the demands may include several payment options including fiat currency, digital assets, offsets, informal swaps, or nominally charitable donations made to the Iranian Red Crescent Society.

“OFAC is issuing this alert to warn US and non-US persons about the sanctions risks of making these payments to, or soliciting guarantees from, the Iranian regime for safe passage,” an OFAC advisory said.

“These risks exist regardless of payment method.”

The Strait of Hormuz handles roughly 20% of the world’s seaborne oil flows.

Iran tightened its grip on the Strait of Hormuz after Israel and the US launched their joint strikes on Iran on Feb. 28.

The US imposed a naval blockade targeting ships going to and from Iran.

 The Sun Malaysia