The money, the gold and the shell companies: US strikes at Iran's financing networks

The US Treasury imposed sanctions on financing networks of Hezbollah and Iranian proxies in Iraq, Lebanon, the UAE, and Turkey. The operation, "Economic Ostracism," aims to cut off funding sources for the Iranian regime. Treasury Secretary Scott Bessent stated they will continue dismantling the networks. Meanwhile, the administration has tightened its licensing policy for transactions with Iran.

The US Treasury imposed sanctions on Thursday against networks that assisted Hezbollah in Lebanon and the Kata'ib Hezbollah militia in Iraq, as part of Operation "Economic Ostracism" aimed at cutting off funding sources for the Iranian regime and its proxies. The measures targeted militia commanders, arms dealers, shell companies, and networks for transferring funds and gold operating in Iraq, Lebanon, the UAE, and Turkey. According to the US Treasury, Lebanese money changers transferred hundreds of millions of dollars from the Revolutionary Guards to Hezbollah, used among other things for purchasing weapons and paying salaries. US Treasury Secretary Scott Bessent stated: "We will find them, cut them off from the US financial system, and dismantle the networks that keep the regime alive." Concurrently, the administration significantly tightened its policy on issuing licenses for transactions with Iran and announced that most requests would be rejected until Tehran changes its conduct. Among other things, the administration addressed the blocking of the Strait of Hormuz, attacks on US forces, and the continued development of nuclear and conventional weapons.