US sanctions network smuggling Iranian LPG as talks falter

WASHINGTON — The Treasury Department stepped up pressure on Iran Friday with sanctions targeting energy smuggling, as negotiations over ending the war and reopening the Strait of Hormuz remain at an impasse.

The department’s Office of Foreign Assets Control said it designated a network responsible for shipping hundreds of millions of dollars’ worth of Iranian-origin liquefied petroleum gas (LPG) to end users in South and East Asia. It used front companies in the United Arab Emirates and China, foreign bank accounts and Iran’s shadow fleet to move millions of barrels of Iranian LPG that was disguised as Omani to circumvent US sanctions.

Secretary of the Treasury Scott Bessent said in a statement that the Trump administration “will continue to sever Iran’s shadow fleet, shadow banking networks, and access to global trade.”

The sanctions come as President Donald Trump has offered mixed signals on prospects for a deal, saying yesterday the Iranians are “ready” to reach an agreement.

“They want to do it,” Trump told reporters in the Oval Office. “But if we can get something down in writing, which will accomplish the same thing without killing everybody, I’d like to do that.”

He told CNBC earlier in the week that he “couldn’t care less” if the negotiations with Iran collapse.

On Wednesday, Iranian Foreign Minister Abbas Araghchi told Beirut-based Al Mayadeen television that “no tangible progress” had been made in the negotiations.