OFAC widens Iran pressure with shadow banking designations, Qingdao Haiye wind-down license and Hormuz toll warning
Treasury on May 1 sanctioned Iranian exchange houses and front companies, issued a wind-down license for Qingdao Haiye Oil Terminal, and warned that Hormuz passage payments to Iran could trigger sanctions.
WASHINGTON, May 1, 2026 - The U.S. Treasury’s Office of Foreign Assets Control expanded pressure on Iran on Friday by designating three Iranian foreign currency exchange houses and associated front companies, issuing General License W for the wind down of certain dealings involving Qingdao Haiye Oil Terminal Co. Ltd., and publishing a fresh alert on the sanctions risks of Iranian demands for Strait of Hormuz passage payments.
Treasury said the action targets Iranian “shadow banking” channels that help move billions of dollars in foreign currency and convert oil-sale proceeds, often settled in Chinese yuan, into funds accessible to the Iranian military and its partners and proxies. The package was issued under a broader May 1 Iran action that also updated the SDN List.
The new SDN listings include six individuals and 16 entities tied to Iran-related sanctions authorities, with several Hong Kong- and UAE-based trading companies named alongside Iranian exchange houses and related facilitators. Separately, OFAC added Qingdao Haiye Oil Terminal Co. Ltd., Onboard Ship Management Limited and Thriving Times International Co Ltd under Executive Order 13846 authorities shown on the recent actions page.
General License W authorizes transactions ordinarily incident and necessary to wind down dealings involving Qingdao Haiye, or entities it owns 50% or more, through 12:01 a.m. EDT on May 31, 2026, provided any payment to a blocked person is made into a blocked, interest-bearing account in the United States. The license does not authorize other otherwise prohibited Iran-related transactions.
In a separate alert, OFAC warned U.S. and non-U.S. persons about sanctions risks tied to Iranian demands for “toll” payments for safe passage through the Strait of Hormuz. The agency said the demands may be made in fiat currency, digital assets, offsets, informal swaps or in-kind transfers, including purported charitable donations. OFAC said the risks apply regardless of payment method.
OFAC also issued FAQ 1250, stating Iranian digital asset exchanges are blocked Iranian financial institutions under U.S. sanctions, even if not separately listed on the SDN List. For maritime service providers, the alert urges enhanced due diligence on vessels transiting the Strait, including scrutiny of any coordination with Iran and any safe-passage fees.
Regulatory Actions
Structured data extracted from official sources and validated by sanctions experts