US sanctions Iran LPG network over shipments to B'desh, targets exchange firm
Washington, June 5
The United States on Friday announced sweeping sanctions against a network accused of shipping Iranian-origin liquefied petroleum gas disguised as Omani fuel to buyers across South and East Asia, including Bangladesh, while also targeting an Iranian foreign exchange company accused of moving hundreds of millions of dollars on behalf of sanctioned Iranian banks.
The action was announced by the US Department of the Treasury's Office of Foreign Assets Control (OFAC), which said the network used front companies in the United Arab Emirates and China, foreign bank accounts and vessels linked to Iran's so-called shadow fleet to evade sanctions and conceal the origin of Iranian LPG.
"Iran's economy is floundering and its military is decimated," Treasury Secretary Scott Bessent said.
"Through Economic Fury, Treasury will continue to sever Iran's shadow fleet, shadow banking networks and access to global trade."
According to the Treasury Department, Afghan national Sarbaz Abdul Zada and Turkish national Mohammad Shakol Mihandoust operated a network of UAE-based front companies that exported millions of barrels of Iranian LPG while falsely identifying it as Omani LPG.
The companies named by OFAC include Butani Trading LLC, Dundlod Trading FZE and ADH Energy FZE.
The Treasury Department said Bangladesh was a significant destination for several of the shipments identified in the sanctions action.
In March 2026, ADH Energy FZE was allegedly used to sell and export millions of barrels of Iranian LPG to end users in Bangladesh.
The Treasury Department said the vessel LPG SEVAN transported 750,000 barrels of LPG to Bangladesh between August and November 2025.
The department alleged that Dundlod Trading FZE delivered 22,000 metric tonnes of LPG to Bangladesh in October 2025, valued at approximately $10.5 million, using the same vessel.
Treasury further alleged that the company used another tanker, GAS ZEINA, for multiple LPG shipments to Bangladesh in May 2025.
Several vessels accused of transporting Iranian LPG were added to OFAC's Specially Designated Nationals and Blocked Persons List.
These include MD 23, GLENDALE, AMIR GAS, GAS LAGOON, MILE and GAZ GMS, along with companies linked to their ownership and operation.
Separately, OFAC sanctioned Iran-based Mehrdad Geramian Nik and Partners Company, known as Geramian Exchange, and its leadership.
The Treasury Department said the exchange house had contracts with sanctioned Iranian banks, including Bank Tejarat, Bank Mellat and Bank Pasargad, and had facilitated transactions involving hundreds of millions of dollars in foreign currency.
Treasury described Iranian exchange houses as a key component of the country's sanctions-evasion network, saying they use brokers, shell companies and overseas accounts to move funds while concealing links to Iran.
— IANS
Reader Comments
The US Treasury Secretary called Iran's economy 'floundering'—that's a strong statement. But sanctions alone won't solve it. I wonder how Bangladesh is handling this since they're a major destination for these smuggled LPG shipments.
This is serious—22,000 metric tonnes of LPG to Bangladesh worth $10.5 million! That's a huge amount of cooking gas ⛽️. Hope India is not indirectly involved through these UAE front companies. We need better tracking of maritime trade in the region.
I have mixed feelings. On one hand, sanctions hurt common Iranians. On the other, this smuggling network is massive—they're moving hundreds of millions through exchange houses like Geramian Exchange. India should push for diplomatic solutions rather than just watching from the sidelines.
The US calls it 'Economic Fury'—what a name! 🫣 But honestly, these sanctions are hurting the entire region. Bangladesh needs LPG for households, and these 'shadow fleet' operators are just exploiting the demand. India must ensure our ports aren't complicit in such networks.
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