US Treasury Sanctions Iranian LPG Smuggling Network to Asia

Severity: High (Score: 60.9)

Sources: Bairdmaritime, Cryptobriefing

Published: 2026-06-08 · Updated: 2026-06-08

Keywords: treasury, department, sanctions, network, iranian, ofac, designated

Severity indicators: issue

Summary

The US Department of the Treasury's OFAC has sanctioned a network involved in smuggling Iranian liquefied petroleum gas (LPG) disguised as Omani product to Asia. Key figures in this operation include Sarbaz Abdul Zada and Mohammad Shakol Mihandoust, who managed UAE-based front companies such as Butani Trading and ADH Energy. The sanctions target multiple entities and six vessels linked to the illicit trade. Notably, the LPG tanker Sevan was involved in transporting 750,000 barrels of LPG to Bangladesh. This action aims to disrupt the economic lifeline for Iran while exposing those complicit in the scheme. The sanctions were issued under Executive Order 13902, which specifically targets Iran's petroleum sector. The operation has raised concerns about the involvement of Chinese entities, with Shanghai Qianye Energy also being sanctioned. This follows previous sanctions targeting a different network involved in similar activities. Key Points: • OFAC sanctioned a network smuggling Iranian LPG disguised as Omani product. • Key individuals Sarbaz Abdul Zada and Mohammad Shakol Mihandoust managed UAE-based front companies. • The sanctions include six vessels, with the tanker Sevan linked to a significant shipment to Bangladesh.

Detailed Analysis

**Impact** The sanctions target a network responsible for shipping millions of barrels of Iranian LPG disguised as Omani product to South and East Asia, notably Bangladesh. Entities involved include UAE- and China-based front companies and six LPG tankers flagged under Panama, Palau, St. Kitts and Nevis, and others. The operation moved hundreds of millions of dollars’ worth of LPG, affecting the petroleum trade sector and complicating compliance for regional importers and financial institutions. Bangladesh is a key end-user country implicated in multiple shipments. **Technical Details** The network employed front companies in the UAE and China, foreign bank accounts, and Iran’s "shadow fleet" to conceal the origin of LPG shipments. The primary tactic was falsifying shipment origin as Omani LPG to evade US sanctions, using vessels such as Sevan, Gas Zeina, MD 23, Glendale, Amir Gas, Gas Lagoon, Mile, and Gaz GMS. No malware, CVEs, or digital asset involvement were reported. The operation exploited traditional shipping and financial mechanisms, with currency transfers routed through sanctioned banks and an Iranian exchange house. **Recommended Response** Organizations should update sanctions screening to include the designated individuals, entities, and vessels, especially those operating in the LPG supply chain and maritime logistics. Financial institutions must monitor and block transactions linked to the identified front companies and flagged vessels. Importers and maritime operators in South and East Asia should verify cargo origins rigorously to avoid compliance violations. Continuous monitoring of shipping manifests and trade documentation for falsified origin claims is advised.

Source articles (2)

• US Treasury sanctions network smuggling Iranian LPG to Asia — Cryptobriefing · 2026-06-07
  OFAC designated individuals, front companies, and six tankers tied to an illicit operation that disguised Iranian shipments as originating from Oman. The US Department of the Treasury just made life c…
• US Treasury Department issues new sanctions targeting Iran's LPG trade — Bairdmaritime · 2026-06-08
  The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated a network of individuals, entities, and vessels that it said were responsible for shipping hundreds of millio…

Timeline

• 2025-04-01 — Previous sanctions issued against another Iranian LPG network: OFAC targeted a separate network allegedly responsible for moving over three million barrels of Iranian LPG.
• 2025-08-01 — Sevan tanker shipment to Bangladesh: The LPG tanker Sevan transported 750,000 barrels of LPG to Bangladesh between August and November 2025.
• 2026-06-05 — OFAC sanctions issued: OFAC designated individuals, front companies, and vessels involved in smuggling Iranian LPG to Asia.
• 2026-06-08 — Sanctions announced: The US Treasury Department announced new sanctions targeting a network smuggling Iranian LPG.

Related entities

• Bangladesh (Country)
• Oman (Country)
• Panama (Country)
• sevan.in (Domain)