WASHINGTON, June 5, 2026 — Treasury Secretary Scott Bessent declared Iran’s economy “floundering” and its military “decimated” Thursday as his department sanctioned a sprawling network of front companies, shell entities, and shadow fleet vessels responsible for shipping hundreds of millions of dollars worth of Iranian liquefied petroleum gas to buyers in South and East Asia — deliberately disguised as Omani LPG to evade U.S. sanctions.
“Iran’s economy is floundering and its military is decimated,” Bessent wrote on X. “Through Economic Fury, Treasury will continue to sever Iran’s shadow fleet, shadow banking networks, and access to global trade.”
The Office of Foreign Assets Control announced the designations Thursday morning, targeting individuals, companies, and vessels operating under Executive Order 13902, which authorizes sanctions against persons operating in Iran’s financial and petroleum sectors.
The LPG Smuggling Network
At the center of the scheme are Afghani national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust — also known as Haji Shakoor — who operate a network of UAE-based front companies exporting millions of barrels of Iranian LPG to end users across South and East Asia, routinely mislabeling the gas as Omani LPG to disguise its Iranian origin.
Their UAE-based front companies — Butani Trading LLC, Dundlod Trading FZE, and ADH Energy FZE — have collectively shipped tens of thousands of metric tons of Iranian LPG worth tens of millions of dollars to South Asia. In March 2026 alone, ADH Energy FZE exported millions of barrels of Iranian LPG to Bangladesh. In October 2025, Dundlod Trading FZE delivered 22,000 metric tons of LPG worth approximately $10.5 million to Bangladesh. Mihandoust also controls China-based Shanghai Qianye Energy Co., Ltd., which is being designated Thursday alongside the UAE entities.
The Shadow Fleet
OFAC designated six vessels used by the network to move Iranian LPG across international waters and added them to the Specially Designated Nationals and Blocked Persons List:
The Palau-flagged tanker MD 23 (IMO 9158240), managed by Marshall Islands-based Limra Gas Limited, has transported hundreds of thousands of barrels of Iranian LPG since 2023. The Panama-flagged GLENDALE (IMO 9139945), owned by Liberia-based Ecoseas Maritime Limited, has transported millions of barrels since 2020. The St. Kitts and Nevis-flagged AMIR GAS (IMO 9167409), managed by Marshall Islands-based Blue Sea Marine and Faateh Maritime, has transported hundreds of thousands of barrels since 2025. The Panama-flagged GAS LAGOON (IMO 9386304), managed by Marshall Islands-based Adamas Shipping, has transported millions of barrels since 2023. The Panama-flagged MILE (IMO 8910897), owned by Marshall Islands-based Black Gold Trade Corporation, has transported millions of barrels since 2024 — including over half a million barrels shipped to Bangladesh by Butani Trading in early 2025. The Panama-flagged GAZ GMS (IMO 9131539), owned by Marshall Islands-based Gas GMS Limited, has transported hundreds of thousands of barrels since 2023.
The Shadow Banking Action
OFAC also designated Iran-based exchange house Mehrdad Geramian Nik and Partners Company — known as Geramian Exchange — and its leadership for moving hundreds of millions of dollars in foreign currency on behalf of sanctioned Iranian banks including Bank Tejarat, Bank Mellat, and Bank Pasargad. As of early 2026, Geramian Exchange held tens of millions of dollars worth of foreign currency on behalf of those sanctioned bank customers.
The family-run firm is operated by Iranian nationals Mehrdad Geramian Nik and Romina Geramian Nik. Mehrdad Geramian Nik also holds foreign citizenship in Dominica — obtained through a citizenship-by-investment program — a common tactic among Iran’s shadow banking actors that allows them to travel internationally, establish companies, and access global banking networks while evading scrutiny of their Iranian ties.
Economic Fury — The Broader Campaign
Thursday’s designations are the latest action under the Trump administration’s “Economic Fury” campaign — a sustained financial pressure effort targeting Iran’s ability to generate, move, and access revenue. Treasury said the campaign has disrupted tens of billions of dollars worth of revenue that would otherwise have been accessible to the Iranian regime and its proxies, including freezing nearly half a billion dollars in regime-linked cryptocurrency.
Previous Economic Fury actions have targeted Iran’s shadow banking networks, networks supplying military components to Iran, Iran-backed militias operating in Iraq, and shadow fleet vessels sustaining Iran’s illicit oil industry. OFAC has previously designated Radin Exchange, Arz Iran Exchange, Opal Exchange, and Amin Exchange as part of the same campaign to dismantle Iran’s broker network. Treasury also recently designated an Iranian entity attempting to extort commercial vessels for passage through the Strait of Hormuz.
Bessent warned that the pressure will continue to expand. Treasury is prepared to impose secondary sanctions on foreign financial institutions that facilitate Iran’s activities, and may take action against foreign airlines supporting illicit Iranian commerce, the department said.