The US Department of the Treasury just made life considerably harder for a network of middlemen who thought relabeling Iranian liquefied petroleum gas as Omani product was a sustainable business model. On June 5, the Office of Foreign Assets Control (OFAC) designated a web of individuals, front companies, and vessels involved in smuggling Iranian LPG to buyers across Asia.
How the network operated
At the center of the scheme were two individuals: Sarbaz Abdul Zada, an Afghan national, and Mohammad Shakol Mihandoust, a Turkish national. Both managed UAE-based entities that exported what OFAC described as millions of barrels of Iranian LPG.
The sanctioned entities read like a directory of purpose-built trade fronts. Butani Trading LLC, Dundlod Trading FZE, ADH Energy FZE, and Sahel Star Oil and Gas Company LLC all operated out of the UAE. Shanghai Qianye Energy Co., Ltd. rounded out the list on the Chinese side of the operation.
The core deception was straightforward: Iranian LPG shipments were falsely labeled as originating from Oman. Six LPG tankers were also designated, four of which flew the Panama flag. One notable shipment involved 750,000 barrels of LPG transported to Bangladesh between August and November 2025.
