ERBIL, Kurdistan Region of Iraq – The US Department of the Treasury on Wednesday announced a new round of sanctions on entities affiliated with a network linked to “Iranian oil shipping magnate” Mohammad Hossein Shamkhani, the son of a recently killed adviser to Iran’s late supreme leader.

Ali Shamkhani, a top adviser to Iran’s late Supreme Leader Ayatollah Ali Khamenei, was killed in US-Israeli airstrikes on Iran in late February. He had previously survived an Israeli strike during June’s 12-day war, sustaining serious injuries, despite his significant influence within Iran’s political and security establishment.

Shamkhani’s son, Mohammad Hossein, was previously sanctioned by the US in July 2025 over his extensive influence in the shipping sector, derived from his father’s position within Iran’s system, often referred to as the “Shamkhani empire.”

He was also targeted by EU sanctions over alleged involvement in trade linked to Russian oil.

“Treasury is moving aggressively with [Operation] ‘Economic Fury’ by targeting regime elites like the Shamkhani family that attempt to profit at the expense of the Iranian people,” Treasury Secretary Scott Bessent said Wednesday.

“Financial institutions should be on notice that Treasury will leverage all tools and authorities, including secondary sanctions, against those that continue to support Tehran’s terrorist activities,” he added.

Shamkhani heads a “multibillion-dollar Iranian and Russian petroleum sales empire” that enriches a family connected to the highest echelons of Iran’s system at the expense of the Iranian people, the statement added. 

The Shamkhani network uses a group of apparently legitimate administrative, consulting, and shipping firms to manage its fleet and evade sanctions, maintaining a public presence that provides a veneer of legitimacy while supporting Iran’s system and enriching the Shamkhani family, it added. 

Iranian national Seyed Naiemaei Badroddin Moosavi was also targeted over alleged involvement as a “Lebanese Hezbollah financier” and also several other companies tied to Iran’s alleged “complex money laundering” network.

Following the outbreak of the US-Israeli war with Iran in late February and the failure of ceasefire talks, Washington warned Tuesday it will impose secondary sanctions on foreign financial institutions that “continue to support Iran’s activities.” 

The US military has imposed a blockade of Iranian ports since Monday that US Central Command (CENTCOM) says includes vessels from all nationalities, adding that the US military "will not impede freedom of navigation" through the Strait of Hormuz for ships traveling to or from non-Iranian ports.