The US intensified its economic offensive against Iran on Tuesday by sanctioning 35 entities and individuals tied to shadow banking, in a move that targets the complex networks that allow the Iranian regime to evade international trade restrictions and fund terrorism.
The Treasury Department’s Office of Foreign Assets Control (OFAC) identified firms that moved tens of billions of dollars for the IRGC. These designated individuals facilitated illicit oil sales while procuring sensitive components for missile systems and funding various regional proxy groups.
“Iran’s shadow banking system serves as a critical financial lifeline for its armed forces, enabling activities that disrupt global trade,” Treasury Secretary Scott Bessent stated. He warned that any institution engaging with these networks now faces severe consequences for threatening US personnel and allies.
Warning for Chinese Refineries
Furthermore, the US government issued a stern warning to Chinese “teapot” refineries that pay tolls to cross the Strait of Hormuz. Officials noted that several independent refineries in Shandong province used the American financial system to conduct prohibited dollar-denominated transactions.
Consequently, any firm paying the Iranian government for passage through the strait risks significant sanctions and loss of US market access. China remains the primary buyer of Iranian crude, accounting for over 80% of Tehran’s total shipped oil exports in 2025.
Meanwhile, efforts to end the two-month Iran war reached an impasse as President Trump rejected Tehran’s latest diplomatic proposal. The White House remains committed to a “maximum pressure” campaign, having sanctioned nearly 1,000 Iran-related targets since February 2025.
These new designations block all US-based assets of the targeted firms and strictly prohibit Americans from conducting any future business. By exposing these mechanisms, Washington aims to permanently reduce the revenue Tehran receives from oil and other various global commodities.
