May 28 (UPI) — The U.S. Treasury announced late Wednesday that it has sanctioned an Iranian entity, newly created to oversee and manage the Strait of Hormuz, as the Trump administration seeks to force Tehran to relinquish control over the vital energy trade route.

The strait has been an issue of contention between the United States and Iran, which are locked in negotiations to end the war.

Iran restricted navigation of the strait after the United States and Israel attacked the country in late February, igniting the war. Washington responded by imposing a military blockade of Iran’s ports, cutting it off from maritime trade.

Since imposing the restrictions, Iran has been adamant about maintaining control of the route, through which about one-fifth of the world’s energy trade flows. The Trump administration has repeatedly threatened that there will be free navigation of the strait again, one way or another.

Earlier this month, Iran launched the Persian Gulf Strait Authority to manage the strait.

The Treasury sanctioned the PGSA on Wednesday, accusing it of being an attempt by Iran’s Islamic Revolutionary Guard Corps to monetize the international waterway.

Treasury Secretary Scott Bessent described the mechanism in a statement as the Iranian military’s “latest attempt to extort global maritime trade.”

Bessent said the Wednesday blacklisting was part of Economic Fury, the Treasury’s rebranding of President Donald Trump’s maximum pressure campaign of sanctions and other trade measures from his first administration seeking to coerce a new nuclear weapons deal from Iran.

The United States has been tightening its financial vise on Iran since 2018 when Trump first imposed sanctions on Tehran after unilaterally withdrawing the United States from a multinational Obama-era nuclear accord aimed at preventing Iran from securing a nuclear weapon.

Trump reimposed the campaign following his return to the White House in early 2025. It was renamed following the start of the military operation Epic Fury that began Feb. 28.

Treasury officials said Wednesday that through the maximum pressure campaign, the Trump administration has denied Iran access to tens of billions of dollars’ worth of revenue.

The sanctions generally prohibit those named from accessing the U.S. financial system and bar U.S. persons and companies from doing business with them. They also expose foreign financial institutions that knowingly facilitate significant transactions for those sanctioned to potential secondary sanctions.

Sen. Tom Cotton, a Republican from Arkansas, had over the weekend called on Bessent to sanction the PGSA, stating the United States “must ensure every actor enabling the terrorist Iranian regime is held accountable.”

“I support the use of existing authorities to impose sanctions on the PGSA, its officers and any foreign entity that pays, processes or facilitates tolls to Iran for passage through the Strait of Hormuz,” he said in a statement.

Iran has rejected the notion that it is running a toll. Iranian Foreign Ministry Spokesperson Esmaeil Baqaei has said that Iran charges fees to cover costs associated with navigational services and environmental protection measures.