The U.S. Treasury Department imposed sanctions on Thursday on an oil smuggling network generating hundreds of millions of dollars for Iran.
Iran’s Armed Forces General Staff used front companies to ship oil and used the revenue to fund terrorist groups, including Hamas, the Houthis and Hezbollah, according to the department.
“The Iranian regime remains focused on leveraging its oil revenues to fund the development of its nuclear program, to produce its deadly ballistic missiles and unmanned aerial vehicles and to support its regional terrorist proxy groups,” stated Scott Bessent, the U.S. treasury secretary. “The United States is committed to aggressively targeting any attempt by Iran to secure funding for these malign activities.”
Thursday’s action is the first round of new sanctions on the Islamic Republic since U.S. President Donald Trump signed an executive order on Wednesday re-imposing a policy of “maximum pressure” on Iran.
The sanctions target part of Iran’s “shadow fleet” of oil tankers and shell companies that help Iran smuggle oil and ultimately sell it to China.
The Treasury Department listed 18 people, entities and ships to be newly designated for sanctions in countries including China, India and the United Arab Emirates.
The United States has previously designated dozens of ships, companies and people for taking part in the elaborate and lucrative smuggling scheme.
Tammy Bruce, the U.S. State Department spokeswoman, stated that “the United States will not tolerate Iran’s destructive and destabilizing behavior and is today sanctioning an international network that channels illicit revenue to the Iranian military.
“We will use all tools at our disposal to hold the regime accountable for its destabilizing activities and pursuit of nuclear weapons that threaten the civilized world,” she added.
