US slaps sanctions on 35 targets over Iran's shadow banking

Washington unveiled sweeping economic measures Tuesday targeting dozens of actors accused of sustaining Tehran's covert monetary operations. The Treasury Department's action aims to dismantle sophisticated financial infrastructure that officials claim has enabled the Islamic Republic to circumvent international restrictions through a network of private intermediaries and offshore shell companies.

The mechanics of sanctions evasion

According to American authorities, Iranian financial institutions rely on specialized private firms referred to as "rahbars" to execute prohibited transactions. These entities allegedly utilize foreign bank accounts registered under shell corporations to process payments for commerce involving the Revolutionary Guard Corps and the National Iranian Oil Company, moving the equivalent of tens of billions of dollars despite existing prohibitions.

Escalation amid fragile regional truce

The punitive measures emerge against the backdrop of ongoing diplomatic tensions, as hostilities between Tehran and the US-Israeli alliance remain paused under a tentative ceasefire arrangement. The conflict, which commenced on February 28, has entered a temporary halt to accommodate negotiations toward a potential resolution, though Washington continues applying maximum economic pressure.

Warning to global financial institutions

Treasury Secretary Scott Bessent characterized the underground banking system as a vital funding stream for Iranian military activities affecting regional stability. "Financial institutions are on notice," Bessent stated, indicating that banks engaging with these networks face severe repercussions. The administration seeks to sever monetary lifelines that allegedly support operations across the Middle East.