U.S. Intensifies Economic Pressure on Iran with New Sanctions Targeting Banks and Companies

Washington, October 16 (Daily Kiran) : The Trump administration has escalated economic pressure on Iran by imposing new sanctions on several banks, companies, and individuals. This latest round targets an Iraqi bank, offshore banks linked to Iran, an Iranian oil trading network operating in Dubai, a front company based in Hong Kong, and a Cuban state bank.

U.S. Treasury Secretary Scott Basset stated, “The squeeze on Iran’s economy is tightening, and its so-called allies can no longer protect it.” He emphasized that the Treasury Department will not relent until the Iranian government’s economic resources are depleted and all financial pathways supporting its military activities are shut down.

According to the U.S. Treasury, these networks have facilitated transactions worth hundreds of millions of dollars through shell companies and foreign exchange traders in the Middle East and Asia. Among those sanctioned is Syed Rouhollah Rajavi, identified by U.S. officials as one of Iran’s key oil traders.

Rajavi is based in Dubai and previously handled the export of millions of barrels of oil monthly for Iran’s national oil company before the imposition of U.S. sanctions. U.S. authorities claim that these networks transfer funds via Hong Kong to the UAE and Turkey, where they are converted into cash and gold. This money is then allegedly transported to Iran and its allied groups via flights operated by Mahan Air.

The Hong Kong-based company, EliteSphere Trading Company Limited, has also been sanctioned for allegedly facilitating financial transactions for a network connected to Iran’s City Bank. Additionally, Saadegh Bavi, an Iranian-Dominican citizen residing in Dubai, is under sanctions for reportedly aiding activities linked to Iran’s Islamic Revolutionary Guard Corps-Quds Force (IRGC-QF).

The U.S. Treasury has imposed sanctions on the International Development Bank for Investment and Finance located in Iraq, accusing it of providing access to U.S. dollars for Iran. Two offshore banks, Jazireh International Bank Company and Chabahar International Bank Overseas Company, are also now subject to these sanctions.

Separately, U.S. Secretary of State Marco Rubio announced sanctions against Cuba’s Banco Internacional de Comercio S.A. (BICSA), alleging it has been providing financial services to Iran’s previously sanctioned Karafarin Bank since 2022. Rubio stated, “For a long time, communist Cuba has served as a haven for countries and organizations that pose threats to the U.S., including Iran.”

He further declared that the Trump administration will not permit any rogue state close to U.S. shores to host foreign military, intelligence, or terrorist activities. The Treasury warned that foreign financial institutions found to have connections with sanctioned individuals or entities could face secondary sanctions.

In a separate move, the U.S. Financial Crimes Enforcement Network has instructed banks to remain vigilant and report any transactions that might exploit Iran’s religious charity networks. There are concerns that religious donations, particularly those given as “Khums,” could be misused for other purposes.

Scott Basset reiterated, “Under President Trump’s leadership, we will not allow the Iranian government to benefit from using religious institutions to fund terrorism.” The Trump administration launched “Operation Economic Outcast” on August 24, aiming to target Iran’s financial and business networks that attempt to evade international sanctions. Previous actions have already addressed Iranian-linked shipping, procurement, and financial networks in the UAE, Hong Kong, China, and other nations.