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HomeNewsUS expands sanctions on Tehran over crackdown and financial networks

US expands sanctions on Tehran over crackdown and financial networks

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Highlights:

  • Senior Iranian security officials sanctioned over protest suppression

  • Fardis Prison designated for alleged detainee abuse

  • Major Iranian banks accused of facilitating illicit financial networks

  • Front companies in UAE and Singapore targeted for oil revenue laundering

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  • US signals continued maximum economic pressure on Tehran

The United States announced a comprehensive new round of sanctions on Tehran in response to the Iranian government’s ongoing violent crackdown on nationwide protests. The sanctions, coordinated by the State Department and the Treasury Department’s Office of Foreign Assets Control (OFAC), target senior Iranian security officials, a notorious detention facility, and a complex financial network accused of enabling repression.

The US aims to sever Tehran’s access to international banking systems and to demonstrate solidarity with the Iranian people protesting government abuses.

Treasury Secretary Scott Bessent stated the sanctions were implemented under the direction of President Donald Trump and reflect Washington’s commitment to holding Iran’s leadership accountable for human rights violations. Bessent added, “We will continue to use every available tool to target those responsible for the regime’s tyrannical oppression.”

Fardis Prison Sanctioned Over Alleged Abuse of Detainees

A major part of the sanctions targets Fardis Prison, which US officials accuse of subjecting detainees, especially women, to cruel and degrading treatment. The prison’s designation freezes any assets it holds under US jurisdiction and prohibits Americans from conducting transactions involving it.

Tehran’s Security Officials Sanctioned for Protest Crackdowns

Among those sanctioned is Ali Larijani, secretary of Iran’s Supreme Council for National Security, identified by the US as a key coordinator of the government’s response to protests that began in December 2025. Treasury officials noted Larijani was among the first senior leaders to advocate for using force against demonstrators.

Additional sanctions were imposed on provincial security commanders in Lorestan and Fars provinces, where security forces allegedly killed protesters and intimidated victims’ families. US officials reported that some families were coerced into making false statements on state TV in exchange for the return of their loved ones’ bodies.

Financial Networks Enabling Tehran’s Repression Targeted

The sanctions also focus on Tehran’s financial infrastructure. OFAC designated 18 individuals and entities linked to what it calls Iran’s “shadow banking” system—networks of front companies and exchange houses used to evade sanctions and move money internationally.

Two state-linked banks, Bank Melli and Shahr Bank, were identified as central hubs in these operations. According to US Treasury officials, Bank Melli has processed billions of dollars in transactions since 2024, often using falsified invoices and complex transfers for entities including the National Iranian Oil Company, the Islamic Revolutionary Guard Corps, and the Central Bank of Iran.

Shahr Bank allegedly operates a similar network through front companies based in the UAE, Iran, and Europe to facilitate payments related to Iranian oil exports to Asia.

US Signals Renewed Economic Pressure on Tehran

Under US law, these sanctions freeze any assets under American jurisdiction and prohibit US persons and businesses from engaging with the designated individuals or entities. Foreign companies continuing to deal with them may also face penalties.

State Department spokesperson Tommy Pigott said, “These measures are designed to deny Tehran access to global financial networks as long as it continues to repress its population.” He emphasized that the US goal is to change Iran’s behavior, not merely to punish, but the scale of the sanctions signals Washington’s readiness to intensify pressure amid the continuing unrest in Tehran and across Iran.

The new sanctions mark a significant escalation in US efforts to respond to Iran’s internal unrest, targeting both the security apparatus responsible for violent crackdowns and the financial systems that support the regime’s repression. With protests ongoing and reports of abuse continuing, Washington’s latest move aims to isolate Tehran economically while underscoring US support for the Iranian people’s demands for change.

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