The United States has imposed sanctions on 22 entities with ties to a vast network involved in illicit oil trade on behalf of the Iranian regime. The move, announced on July 9, 2025, targets a shadow banking network that utilizes foreign front companies to transfer funds and sustain the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Tehran’s campaigns of terror.
The network, which spans multiple jurisdictions, has been found to use Hong Kong, United Arab Emirates, and Türkiye-based front companies to help sanctioned Iranian government entities generate revenue from the sale of petroleum and other commodities subject to U.S. sanctions. This action builds upon previous sanctions implemented on February 4, as outlined in National Security Presidential Memorandum-2.
The sanctions are being taken pursuant to the counterterrorism authority Executive Order (E.O.) 13224, as amended. The move aims to deny Iran access to financial networks and the global banking system, promoting accountability for those who seek to undermine international peace and security.
The Treasury Department has issued a separate press release for more information on this action, which can be found here.
Key Points:
- 22 entities sanctioned with ties to Iran’s shadow banking network of illicit oil traders
- Network uses foreign front companies in Hong Kong, UAE, and Türkiye to transfer funds and generate revenue for sanctioned Iranian government entities
- Sanctions build upon previous measures implemented on February 4, National Security Presidential Memorandum-2
- Action taken pursuant to Executive Order (E.O.) 13224, as amended
- Denies Iran access to financial networks and global banking system
In a statement, the U.S. government emphasized its commitment to promoting accountability for those who seek to undermine international peace and security. The move marks another step in the ongoing effort to counter Iranian destabilizing activities and restrict their ability to engage in illicit trade practices.
The United States will continue to closely monitor this situation and take further action as necessary to protect national security interests.
Conclusion:
The U.S. sanctions on Iran’s shadow banking network demonstrate the country’s continued commitment to holding rogue actors accountable for their actions. The move highlights the need for international cooperation in addressing the global challenges posed by terrorist financing and illicit trade practices.