The U. S. Treasury announced sanctions on 10 individuals and companies, primarily based in China and Hong Kong, for allegedly helping Iran acquire weapons and materials for its Shahed drones and ballistic missiles. This announcement comes just before President Donald Trump’s upcoming visit to China and amid stalled efforts to end the war with Iran.
The Treasury stated it is prepared to take further economic actions against Iran’s military production capabilities and foreign businesses that support illegal Iranian trade. This includes potential secondary sanctions on financial institutions linked to China’s “teapot” oil refineries that assist Iran. Experts noted that the sanctions aim to weaken Iran’s threat to shipping in the Strait of Hormuz, a critical passage for global oil and natural gas, which has seen a significant reduction in traffic since the conflict began.
Companies facing sanctions include China’s Yushita Shanghai International Trade Co Ltd for facilitating weapon purchases, Dubai’s Elite Energy FZCO for transferring funds, and Hong Kong’s Mustad Ltd for aiding Iran’s Islamic Revolutionary Guard Corps. Iran is known for its significant drone manufacturing capabilities, producing around 10,000 units monthly, but the focused nature of the sanctions may allow Iran to adjust its procurement strategies.
With information from Reuters
