Washington: The U.S. Treasury Department has unveiled a new series of sanctions targeting individuals and entities accused of facilitating financial support for Iran’s military operations, including the Islamic Revolutionary Guard Corps (IRGC) and the Ministry of Defense and Armed Forces Logistics (MODAFL). The sanctions focus on networks operating primarily in Hong Kong and the United Arab Emirates (UAE) that are alleged to channel funds to Iran’s military apparatus.
Treasury officials stated that the designated parties have been instrumental in moving funds, including proceeds from Iranian oil sales, to benefit Iran’s Quds Force and other military entities. These financial facilitators reportedly exploit complex methods such as front companies, layered transactions, and cryptocurrency platforms to circumvent existing sanctions and obscure the origins of the funds.
“The United States will continue to disrupt networks that enable Iran to finance its destabilizing military activities,” said a Treasury spokesperson. The sanctions prohibit U.S. individuals and businesses from conducting transactions with the designated entities, effectively cutting off their access to American financial systems. Authorities emphasize that these measures are part of a broader strategy of “maximum pressure” to limit Iran’s military capabilities without direct military engagement.
The announcement comes at a time of heightened tensions in the Middle East, where Iran’s regional activities and missile programs continue to draw international scrutiny. While the U.S. frames the sanctions as necessary to counter destabilizing actions, Iranian officials have repeatedly denounced such measures as economic aggression, asserting that they harm ordinary citizens while failing to deter military development.
Analysts say that these sanctions could significantly disrupt the financial operations of the IRGC and MODAFL, making it more difficult for Iran to sustain overseas military operations. However, the effectiveness of such measures depends on international cooperation, particularly in jurisdictions like Hong Kong and the UAE, where enforcement of U.S.-led sanctions can be challenging.
By targeting the financial arteries of Iran’s military, Washington aims to constrain Tehran’s ability to project power regionally, while signaling to allies and adversaries alike that economic and financial tools remain a central component of U.S. foreign policy.