US announces new sanctions against networks aiding Hezbollah, other Iranian proxies in Middle East

On Thursday, the United States announced fresh sanctions targeting entities and individuals linked to Hezbollah and other Iranian proxies operating in the Middle East. These measures are part of the Treasury Department's Operation Economic Outcast, which aims to cut Iran off from funding for military activities, cyberattacks, and its Islamic Revolutionary Guard Corps.

The sanctions specifically targeted firms and individuals in Iraq, the United Arab Emirates, Lebanon, and Turkey that support the Kataib Hezbollah and Hezbollah factions.

In addition to the sanctions, the Treasury settled a case with a US citizen who faced potential civil liability for alleged violations of Iran-related sanctions. The Treasury also appealed to the public for information on any instances of sanctions evasion or money laundering by Iran. OFAC has indicated it will deny the majority of Iran-related licensing requests unless there are exceptional circumstances, and its licensing division has begun denying the vast majority of outstanding Iran-related license requests.

Treasury Secretary Scott Bessent emphasized that Operation Economic Outcast is aimed at those who support the faltering Iranian regime, whether they finance terror, launder money, or help Iran evade sanctions. The ongoing Iran war has negatively impacted US President Donald Trump's approval ratings and could threaten the Republican Party's chances in the midterm elections.

This campaign is not as swift as the US intervention in Venezuela, but rather a prolonged battle of attrition marked by attacks on oil tankers, which has also spread to neighboring countries.

The sanctions did not target Iran-aligned Houthis, who recently seized control of Yemen's port city of Mocha and advanced down the Red Sea coast, gaining control over the Bab el-Mandeb Strait, a vital shipping route. However, the Treasury's campaign is significantly affecting Iran's economy, with oil loadings dropping from 1.8 million barrels per day to about 0.2 million barrels per day over the past 30 days and offloadings falling from 1.4 million barrels per day to 0.9 million barrels per day.

The quantity of Iranian or suspected Iranian oil on the water has also decreased to 110 million barrels over the past week, down from over 180 million barrels in January and February. The Iranian rial has depreciated by approximately 30% against the US dollar since the start of the war.