TENSIONS between decades-old archenemies Washington and Tehran escalated anew after the U.S. Treasury Department sanctioned nearly 50 individuals and entities that it claimed belong to a so-called shadow banking network that funds the Islamic republic with billions of dollars.
The U.S. Treasury Department accused Iran’s Defense Ministry and Armed Forces Logistics (MODAFL) as well as the Islamic Revolutionary Guard Corp (IRGC) of using the network to finance its activities.
Both entities are under U.S. sanctions.
According to the U.S. Treasury, the network helped Iran’s military gain access to the international financial system and process billions of dollars in money since 2020.
The massive funds were allegedly earned from the sale of oil and petrochemicals.
Some of the money was allegedly used to provide weapons and funding to Iran’s proxy groups, such as Yemen’s Houthi group, and to transfer drones to Russia.
The action means the network’s funds in the United States will also be frozen.
Besides Iran and the United States, the U.S. Treasury Department also targeted dozens of companies based in Hong Kong, the United Arab Emirates, the Marshall Islands, and Turkiye.
Iran has been battered with Western sanctions that affected its economy following Washington’s withdrawal from a landmark nuclear deal in 2018.
