US Treasury Sanctions 10 More Entities Over Alleged Support for Iran's Military

The Trump administration has expanded its economic pressure campaign against Iran, designating 10 additional individuals and companies accused of helping supply the country's armed forces. The US Treasury Department announced the measures on Tuesday, naming targets in China, Pakistan, Turkiye, Saudi Arabia and Iran itself, according to the department's statement.

Washington alleges that the sanctioned representatives and technology firms procured weapons and related parts for Iran's military apparatus. Three of the designated entities are based inside Iran, while the remainder are spread across several of Tehran's key regional and international trading partners.

In announcing the move, the Treasury said the action was intended to further degrade the Iranian government's capacity to rebuild its weapons programs while raising the cost for anyone who chooses to assist Tehran's military procurement efforts. The department framed the designations as part of a broader effort to cut off Iran's access to global markets.

The measures fall under Operation Economic Outcast, a Treasury Department initiative that US officials unveiled in August. Treasury Secretary Scott Bessent announced the campaign with the stated goal of pressuring Tehran into agreeing to a deal to end the ongoing war.

President Donald Trump had previously described the effort as an unprecedented scale of economic warfare and isolation against Iran, warning that any country engaging in trade with Tehran would face what he called tremendous consequences. Tuesday's announcement represents a further installment in that campaign, which began with sanctions targeting China-based firms and business leaders.

According to the Treasury, all of those designated on Tuesday were allegedly involved in procuring weapons and weapons components for Iran's Ministry of Defense and Armed Forces Logistics, the entity responsible for weapons research, production and acquisition for Iran's armed forces.

Among the targets was EC Mojo Technology Co Ltd, a company based in Hong Kong, along with one of its representatives, Li Fen. Treasury alleged that EC Mojo supplied electronic components to the Iranian military, while Li attempted to evade sanctions and export controls. Another designated firm was Cavalier Dynamics for Technologies Company, based in Saudi Arabia. In its announcement, the Treasury said it would act in coordination with Saudi government partners.

The inclusion of Chinese entities is notable given recent diplomatic developments between Washington and Beijing. Trump recently hosted Chinese President Xi Jinping for his first state visit to the White House in more than a decade, after which the US president touted progress in trade talks between the two countries. Despite those warming ties, several Chinese firms appeared on Tuesday's sanctions list.

China remains one of Iran's largest trading partners, and the Trump administration has faced scrutiny over how aggressively it would confront Beijing over its role in Iran's economy. When the initial round of sanctions was rolled out, Bessent defended the decision to hold back certain measures, saying everyone was being given an opportunity to remedy bad behavior and asking why he would want to blow up the global financial system.

The war between Iran and the US-Israel alliance began on February 28, when the two allies launched a series of deadly attacks targeting Tehran's leadership and military. Both sides have since claimed victory, but critics argue the conflict has no clear end in sight, and the sanctions campaign has become a central tool in Washington's efforts to force a negotiated settlement.

Beyond military procurement, Operation Economic Outcast has also reached into Iranian economic sectors not directly tied to the armed forces. Recent sanctions on the civilian airline sector have left some passengers stranded after Iranian airlines and international carriers abruptly cancelled flights to and from Iran. Last week, Iraq sought an exemption from a US ban on Iranian flights, and flights between Iran and Iraq's Najaf airport later resumed amid protests from Tehran.

The human toll of the pressure campaign is also becoming visible inside Iran. With fears of new US fighting growing, Iranians have reportedly been stockpiling food and medicine, while the country's currency fell to a record low on Tuesday amid war-related economic strain.

Still, experts have questioned how effective the heightened sanctions campaign will ultimately prove. Iran has endured heavy US sanctions for years, developing coping mechanisms and alternative trading channels that may blunt the impact of new designations. The latest measures nonetheless signal that Washington intends to keep tightening the squeeze, even at the risk of friction with partners such as China and Saudi Arabia.