The United States has intensified economic pressure on Iran by imposing sanctions on 35 entities and individuals linked to the country's shadow banking sector. The Treasury Department's Office of Foreign Assets Control (OFAC) stated that these designations target networks facilitating billions of dollars in transactions tied to sanctions evasion and Iran's support for terrorism.
OFAC also issued a warning to banks regarding business with Chinese 'teapot' refineries, accused of paying tolls to Iran or the Islamic Revolutionary Guard Corps (IRGC) for passage through the Strait of Hormuz. The Treasury emphasised that such payments pose significant sanctions risks, particularly for foreign financial institutions.
The sanctions aim to disrupt mechanisms Tehran uses to receive payment for oil and other commodities, reducing its revenue. Since February 2025, OFAC has sanctioned around 1,000 Iran-related individuals, vessels, and aircraft as part of a maximum pressure campaign.
Among the designated entities are Farab Soroush Afagh Qeshm Company, which works with Iran's Shahr Bank to facilitate oil sales, and several rahbar companies that coordinate with Bank Sina and Bank Sepah. Two companies, Nix Energy and Tai Lung Trading, were also sanctioned for transferring funds on behalf of previously sanctioned Iranian individuals.
Efforts to end the two-month Iran war remain deadlocked, with US President Donald Trump rejecting a Tehran proposal that set aside nuclear discussions until after the conflict and shipping disputes are resolved. Treasury Secretary Scott Bessent warned that any institution engaging with these networks faces 'severe consequences.'
