The United States on Tuesday broadened its sanctions targeting Iran’s oil sector, focusing specifically on the network connected to petroleum shipping magnate Mohammad Hossein Shamkhani, the Treasury Department announced. As part of the expanded measures, the department also froze $130 million held in digital wallets associated with Iran’s central bank, signaling increased scrutiny of the country’s growing use of cryptocurrency amid ongoing regional tensions.

Treasury Secretary Scott Bessent said the action aims to intensify economic pressure on Tehran following the resumption of what Washington described as destabilizing attacks in the strategic Strait of Hormuz. The waterway, a crucial passage for global energy shipments, has been the site of escalating hostilities since February when US and Israeli operations prompted Iran to begin obstructing maritime traffic. The United States reinstated a naval blockade against Iranian ports earlier this year, from mid-April through mid-June.

The Treasury Department identified Mohammad Hossein Shamkhani’s network as a pivotal driver behind Iran’s oil exports and noted its expansion into international commodities trading. The recent sanctions target more than 50 individuals, entities, and vessels believed to facilitate revenue generation for Iranian authorities. According to the Treasury, these efforts bring to over 200 the number of sanctions imposed on participants connected to Shamkhani’s organization.

Mohammad Hossein Shamkhani was the son of Ali Shamkhani, a senior security official and adviser to Iranian Supreme Leader Ali Khamenei. Both were reportedly killed on February 28, coinciding with the start of intensified US and Israeli military actions across the region.

Bessent highlighted the department’s action against digital financial channels, stating that multiple cryptocurrency wallets tied to Iran’s central bank had been sanctioned and their assets frozen. He emphasized a continued commitment to disrupt Iran’s ability to access illicit revenue streams through emerging digital platforms.

Experts note that cryptocurrency has become an increasingly important tool for Iran to bypass longstanding US and European sanctions that have largely excluded it from the global financial system. These digital assets have served not only as a means for the government and affiliated groups like the Revolutionary Guards to circumvent restrictions but also as a vital financial resource for ordinary citizens contending with high inflation under sanctions.

The Treasury Department’s announcement follows a series of US military strikes against Iranian positions and renewed enforcement of maritime restrictions aimed at curbing Iran’s regional influence amid an increasingly volatile Middle East environment.