Washington, DC – In a new escalation of its “economic wrath” strategy, the US Treasury Department announced a new round of stringent sanctions targeting complex financial networks operating on behalf of the Iranian regime. The latest measures include adding three major Iranian exchange companies and a number of their associated shell companies to the sanctions list. This action was taken on charges of managing and facilitating billions of dollars in financial transactions annually, circumventing international oversight.
Currency weaponization and drying up the source
The Office of Foreign Assets Control (OFAC) explained that these companies play a pivotal role in circumventing restrictions on the energy sector. According to the department’s statement, Iran relies primarily on settling its oil sales in Chinese yuan. This highlights the importance of these companies in converting those proceeds into other foreign currencies. This conversion aims to facilitate their use to finance Iranian military activities and support regional proxies.
In a firm statement, US Treasury Secretary Scott Bisent affirmed the administration’s determination to pursue all loopholes, saying: “We will resolutely target the regime’s ability to provide and transfer funds, and we will pursue all those who facilitate Tehran’s attempts to evade sanctions.”
Hormuz Strait warnings: No free passage
The measures were not limited to companies, but extended to international shipping in the Strait of Hormuz, a vital artery for global energy, through which approximately 20% of the world’s oil and gas supplies pass. The US Treasury also warned shipping companies against complying with Iranian demands to pay fees for “safe passage.” It asserted that any payments made under the guise of “charitable donations” to entities such as the Iranian Red Crescent or the “Bonyad Mostazafan Fund” would subject the payers to severe sanctions.
This warning came after reports surfaced of payments reaching as high as $2 million per vessel for passage. This comes amid Iranian proposals to impose official fees as part of negotiations to de-escalate tensions. OFAC emphasized that the risk of sanctions remains regardless of the payment method, whether it be fiat currency, digital assets, or barter.
These steps reflect Washington’s desire to close all financial avenues to Tehran. As a result, international companies are left with a single choice: full compliance with US restrictions or isolation from the global financial system.
