(Updates with additional comments by Bessent in paragraphs 9-13.)
The US Treasury Department on Wednesday sanctioned Iran's Persian Gulf Strait Authority, alleging that the agency extorted commercial vessels in the Strait of Hormuz to fund the Islamic Revolutionary Guard.
"The Iranian military's latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash," Treasury Secretary Scott Bessent said in a statement.
The sanctions target the PGSA and any person or entity cooperating with the agency, which was established earlier in May to approve transit through the Hormuz and charge tolls that could reportedly reach as high as $2 million per vessel.
Treasury said vessels transiting the strait had been required to submit information to the PGSA and follow Iranian-designated navigation routes near Iran's coastline in exchange for what Tehran described as permission for safe passage.
The sanctions form part of the Trump administration's broader "Economic Fury" campaign aimed at intensifying economic pressure on Iran and curbing its oil revenues.
"Forming a Wall of Steel, the US Naval blockade has ensured a record low amount of Iranian crude on the water. We will also be shutting down both Iranian airlines' access to landing spots, refueling, and ticket sales," Secretary Bessent said on X.
Treasury also warned shipping companies, insurers, and financial institutions that they could face sanctions exposure if they comply with Iranian demands related to transit payments through the Strait.
The Department said prohibited payments could include transfers in traditional currencies, digital assets, informal swaps or other in-kind arrangements.
Separately, Bessent said the Trump administration will not "tolerate" actions implementing a tolling system in the Strait of Hormuz.
"The United States Government will not tolerate any effort to impose a tolling system in the Strait of Hormuz," Bessent said in an X post.
Bessent went on to warn Oman against collaborating with Iran over a tolling mechanism.
"Oman, in particular, should know that the US Treasury will aggressively target any actors involved - directly or indirectly - in facilitating tolls for the Strait and any willing partners will be penalized," Bessent said.
He urged all nations "should reject outright any efforts by Iran to disrupt the free flow of commerce."
Bessent's warning to Oman comes a day after President Donald Trump warned Oman of military consequences if it joined forces with Iran to set up a tolling system in the strategic waterway.