The US has imposed sweeping sanctions on an Iranian LPG network accused of disguising Iranian fuel as Omani LPG and exporting it to Bangladesh and other Asian markets. The sanctions also target an Iranian foreign exchange firm allegedly involved in moving hundreds of millions of dollars for sanctioned Iranian banks.
The United States has announced a fresh round of sanctions against an extensive network accused of exporting Iranian-origin liquefied petroleum gas (LPG) to international buyers while disguising the fuel as originating from Oman. The sanctions, unveiled on Friday by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), also target an Iranian foreign exchange company accused of facilitating large-scale financial transactions for sanctioned Iranian banks.
According to the US Treasury Department, the sanctioned network allegedly used a complex system of front companies based in the United Arab Emirates (UAE) and China, along with foreign bank accounts and vessels linked to Iran’s so-called “shadow fleet,” to conceal the true origin of Iranian LPG and evade international sanctions.
US Treasury Secretary Scott Bessent said the latest measures form part of Washington’s ongoing pressure campaign against Tehran.
“Iran’s economy is floundering and its military is decimated,” Bessent said while announcing the sanctions. He added that the Treasury Department would continue efforts to disrupt Iran’s shadow fleet, shadow banking operations, and access to global trade networks.
The Treasury Department identified Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust as key operators behind a network of UAE-based front companies allegedly responsible for exporting millions of barrels of Iranian LPG. Authorities claim these shipments were falsely labeled as Omani LPG to conceal their Iranian origin.
Among the companies sanctioned are Butani Trading LLC, Dundlod Trading FZE, and ADH Energy FZE. US authorities allege that these firms played significant roles in facilitating the export and sale of Iranian LPG to buyers across South and East Asia.
Bangladesh was specifically identified as a major destination for several of the LPG shipments highlighted in the sanctions action. According to the Treasury Department, ADH Energy FZE was allegedly involved in selling and exporting millions of barrels of Iranian LPG to end users in Bangladesh during March 2026.
The Treasury further alleged that the vessel LPG SEVAN transported approximately 750,000 barrels of LPG to Bangladesh between August and November 2025. Another shipment involving 22,000 metric tonnes of LPG valued at around $10.5 million was reportedly delivered to Bangladesh in October 2025 through Dundlod Trading FZE using the same vessel.
In addition, authorities stated that another tanker, GAS ZEINA, was used for multiple LPG deliveries to Bangladesh during May 2025.
As part of the sanctions package, several vessels accused of transporting Iranian LPG have been added to OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List. The vessels include MD 23, GLENDALE, AMIR GAS, GAS LAGOON, MILE, and GAZ GMS. Companies associated with the ownership, management, and operation of these vessels have also been sanctioned.
Separately, OFAC imposed sanctions on Iran-based Mehrdad Geramian Nik and Partners Company, commonly known as Geramian Exchange, along with its leadership. The Treasury Department alleged that the exchange house maintained contractual relationships with several sanctioned Iranian financial institutions, including Bank Tejarat, Bank Mellat, and Bank Pasargad.
US officials claim that Geramian Exchange facilitated foreign currency transactions worth hundreds of millions of dollars on behalf of these banks. Treasury officials described Iranian exchange houses as critical components of Tehran’s sanctions-evasion infrastructure, utilizing brokers, shell companies, and overseas accounts to move funds while obscuring their connection to Iran.
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The latest sanctions underscore Washington’s continued efforts to tighten economic pressure on Iran by targeting both its energy exports and financial networks. The move also highlights concerns over the use of international shipping routes, front companies, and foreign financial channels to bypass existing restrictions, with Bangladesh emerging as one of the destinations identified in the alleged LPG trade network.
