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The US has sanctioned a financial network tied to Iranian oil sales, targeting entities in Hong Kong and the UAE to disrupt funding for Iran’s military and proxies.
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The United States on Tuesday imposed new sanctions targeting an international financial network allegedly involved in facilitating the sale of Iranian oil. The designated network includes individuals and entities based in Hong Kong and the United Arab Emirates.
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According to the US State Department, the proceeds from these transactions have supported Iran’s Islamic Revolutionary Guard Corps Quds Force (IRGC-QF) and the Ministry of Defense and Armed Forces Logistics (MODAFL). These funds have reportedly been used to finance regional proxies and weapons development activities.
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The action was taken under Executive Order 13224, as amended, and marks the fourth round of sanctions on Iran’s financial infrastructure since the issuance of National Security Presidential Memorandum 2, which outlines a maximum pressure policy on Iran.
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In a statement, the State Department said the United States “remains committed to disrupting illicit funding streams” linked to Iran’s activities.
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Separately, State Secretary Marco Rubio has revoked a 2018 sanctions exception under the Iran Freedom and Counter-Proliferation Act (IFCA) that allowed certain reconstruction and economic development activities in Afghanistan involving Iran’s Chabahar Port. The revocation takes effect on September 29, 2025.
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Entities involved in operations at Chabahar or in other activities specified under the IFCA may be subject to US sanctions once the revocation takes effect.
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The US Treasury Department’s OFAC sanctioned 22 entities based in Hong Kong, the UAE, and Turkey for facilitating the sale of Iranian oil that funds the IRGC-QF, the department announced in July.
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IRGC-QF leverages front companies outside of Iran, using “offshore accounts to transfer hundreds of millions of dollars in profits derived from Iranian oil sales to circumvent sanctions and funnel funds toward IRGC-QF terrorist activities,” OFAC said.
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Refineries purchase Iranian oil and then transfer payments to these front companies, who in turn move funds to other front company accounts also controlled by the IRGC-QF, OFAC stated.
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IRGC-QF uses these proceeds to fund weapons programs and support Iran’s terror proxies across the Middle East.
