US Sanctions Iranian LPG Smuggling and Shadow Banking Network

The United States has intensified its pressure campaign against Iran's energy exports and financial activities by imposing a new round of sanctions. The U.S. Treasury Department announced measures targeting a complex network accused of smuggling liquefied petroleum gas (LPG) and operating shadow banking channels to circumvent international restrictions.

According to the Treasury, the sanctioned network utilized front companies based in the United Arab Emirates and China. These entities allegedly employed falsified shipping records and a fleet of vessels to disguise Iranian-origin LPG as Omani fuel. Millions of barrels were reportedly transported to Asian markets through this scheme, which relied on "shadow fleet" vessels and foreign bank accounts to conceal the shipments' true origin and bypass U.S. sanctions.

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The sanctioned network used front companies based in the United Arab Emirates and China, along with falsified shipping records and a fleet of vessels, to disguise Iranian-origin LPG as Omani fuel and transport millions of barrels to markets across Asia.

Among the designated individuals are Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust, also known as Haji Shakoor. They are accused of managing UAE-based companies like Butani Trading LLC, Dundlod Trading FZE, and ADH Energy FZE. ADH Energy FZE, in particular, is cited for allegedly facilitating the sale and export of millions of barrels of Iranian LPG to Bangladesh in 2026.

In a related action, the Treasury also designated Mehrdad Geramian Nik and Partners Company, an Iranian exchange house, along with its leadership. This entity is accused of moving hundreds of millions of dollars through foreign currency channels on behalf of sanctioned Iranian banks, including Bank Tejarat and Bank Mellat. The sanctions freeze any U.S.-based assets of the designated parties and prohibit American individuals and entities from engaging in transactions with them. Foreign institutions that deal with the network also risk facing secondary sanctions.

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The department said the operation relied on “shadow fleet” vessels and foreign bank accounts to conceal the true source of the shipments and bypass US sanctions.