Iran used oil-for-goods deals with China to bypass sanctions, sources say

The United States has imposed new sanctions on entities and individuals linked to aiding Iran's proxies in the Middle East, as part of its broader campaign to isolate Iran economically. These sanctions are a key component of the Treasury Department's "Operation Economic Outcast," launched on August 24, targeting Tehran's funding for military activities, cyberattacks, and support for groups like Hezbollah and the Islamic Revolutionary Guard Corps (IRGC).

The Treasury's Office of Foreign Assets Control (OFAC) has targeted entities in Iraq, the United Arab Emirates, Lebanon, and Turkey that are alleged to support Kata'ib Hezbollah, an Iraqi Shia paramilitary group under IRGC command, and Hezbollah, a Lebanese Shia political party. Additionally, a US citizen has agreed to pay $1.43 million to settle potential civil liabilities for 39 alleged violations of sanctions on Iran.

The OFAC has also issued a broad appeal for tips on any sanctions evasion or money laundering by Iran, and has clarified that it will likely reject most Iran-related licensing requests, except in exceptional circumstances. As of now, it has denied the vast majority of outstanding Iran-related specific license requests.

Treasury Secretary Scott Bessent emphasized that "Operation Economic Outcast" is targeting those who continue to support the Iranian regime, whether by financing terror, laundering money, or helping Iran evade sanctions. The sanctions could potentially impact the Iran war, which has affected President Donald Trump's approval ratings and posed challenges for his Republican Party in the upcoming midterm elections.