Treasury Secretary Scott Bessent emphasized disrupting Iran’s financial activities to block its weapons funding.
The U.S. has dropped a heavy hand on Iran by sanctioning 18 entities and individuals that are part of a network helping the country evade sanctions and funnel money.
This move, announced by the U.S. Treasury Department on Thursday, is all about keeping the pressure on Iran, who the U.S. believes continues to flout international sanctions.
This network includes companies like RUNC Exchange System Company, Cyrus Offshore Bank, and Pasargad Arian Information and Communication Technology, all of which are accused of working behind the scenes to keep Iran’s economy moving despite sanctions.
Treasury Secretary Scott Bessent made it clear that these new measures are part of a broader U.S. strategy to choke off Iran’s financial lifeblood. He emphasized that Washington intends to keep targeting the channels Iran uses to evade sanctions, with the ultimate goal of blocking the revenue that funds the country’s military programs.
“Treasury will continue to disrupt Iran’s schemes aimed at evading our sanctions, block its access to revenue, and starve its weapons programs of capital in order to protect the American people,” he said.
Targeting key players in Iran’s financial web
The new sanctions are focused on companies and individuals that provide Iran with a way to get around the financial restrictions imposed by the U.S. government.
RUNC Exchange is one of the main targets, a company accused of being involved in illegal money transfers, making it easier for Iran to sidestep American financial regulations.
Another big target is Cyrus Offshore Bank, a key player in moving money that Iran needs to fund its activities. Alongside these, Pasargad Arian Information and Communication Technology, an Iranian tech company, has been added to the list due to its connections to financial dealings linked to Iran’s controversial activities.
The Treasury’s efforts go beyond just freezing assets or imposing financial restrictions. This is part of an ongoing attempt by the U.S. to dismantle the network of firms and individuals helping Iran stay afloat economically.
Washington’s message is clear: businesses and institutions that choose to engage with Iran will face consequences. It’s a tactic that’s been ramped up in recent years, as Iran continues to search for ways to bypass sanctions and keep its economy moving, especially in sectors that fund its military ambitions.
Oil prices react to tariffs and sanctions
While the sanctions hit Iran, the broader global market is feeling the heat of new U.S. tariffs. On Thursday, U.S. tariffs against several trade partners went into effect, raising concern about economic slowdowns that could dampen demand for oil.
Early Friday trading saw Brent crude at $66.40 per barrel, with a week-over-week drop of more than 4%. Meanwhile, U.S. West Texas Intermediate (WTI) futures slid to $63.82 a barrel, marking a more than 5% decline over the week.
The market reaction stems from fears that global economic growth could slow due to these tariffs. In turn, this could reduce the demand for crude oil, as noted by ANZ Bank analysts. This comes on top of decisions made by the OPEC+ group to roll back significant oil output cuts sooner than expected, pushing oil prices even lower.
At the same time, the Kremlin confirmed that Russian President Vladimir Putin and U.S. President Donald Trump would meet soon to discuss the ongoing war in Ukraine. This diplomatic effort is expected to have a major impact on global markets.
Even though Russia’s oil exports continue despite sanctions, new tariffs on India for buying Russian crude oil have kept pressure on oil prices, with analysts warning that the tariff move won’t drastically reduce the flow of Russian oil into global markets.
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