The United States has imposed sanctions on Iran’s Hormuz Strait Authority, the body responsible for overseeing maritime traffic through the strategic waterway. The U.S. Treasury Department announced the decision on Wednesday, warning that anyone cooperating with the authority would also face sanctions. The Hormuz Strait handles nearly one-fifth of the world’s oil supply, making it a critical global trade route.

According to the report, Iran established the authority to manage shipping through the strait. The move follows the closure of the waterway by Iran after the United States and Israel began military action against the country on February 28. U.S. Treasury Secretary Scott Besant stated that Iran’s attempt to extract money from global maritime trade reflects the regime’s growing financial desperation.

Last week, the Hormuz Strait Authority published a map reaffirming Tehran’s claim over extensive waters on both sides of the narrow passage, underscoring Iran’s continued assertion of control over the region.