U.S. Treasury Sanctions Iran-Backed Militias and Energy Export Network

U.S. Intensifies Pressure on Iran with Dual Sanctions

WASHINGTON – The U.S. Department of the Treasury announced a significant new round of sanctions on Thursday, October 9, 2025, targeting both Iran-backed militia groups and key elements of Iran's energy export infrastructure. The comprehensive action, spearheaded by the Treasury's Office of Foreign Assets Control (OFAC), aims to disrupt financial flows to the Iranian regime and its proxies, which the U.S. accuses of destabilizing the Middle East and threatening American interests. The sanctions target over 90 individuals, entities, and vessels across multiple jurisdictions.

Dismantling Iran's Energy Export Machine

A primary focus of the new sanctions is to degrade Iran's ability to generate revenue through petroleum and petrochemical exports. The Treasury designated over 50 individuals, entities, and vessels involved in facilitating Iranian oil and liquefied petroleum gas (LPG) sales and shipments. These networks operate in countries including China, the United Arab Emirates, India, Hong Kong, and Singapore.

Secretary of the Treasury Scott Bessent stated, 'The Treasury Department is degrading Iran's cash flow by dismantling key elements of Iran's energy export machine.' He added that 'Under President Trump, this administration is disrupting the regime's ability to fund terrorist groups that threaten the United States.'

Specific targets in this category include:

• Nearly two dozen 'shadow fleet' vessels used for illicit shipping.
• A China-based crude oil terminal.
• An independent 'teapot' refinery.
• Indian nationals, including Varun Pula, Soniya Shrestha, and Iyappan Raja, for their roles in transporting Iranian petroleum products and LPG.

These actors have collectively enabled the export of billions of dollars' worth of petroleum and petroleum products, providing critical revenue to the Iranian regime.

Targeting Iran-Backed Militias in Iraq

In a separate but related action, the Treasury also took aim at individuals and companies assisting the Iranian regime in evading U.S. sanctions, smuggling weapons, and engaging in widespread corruption in Iraq. These Iran-backed groups are accused of being responsible for the deaths of U.S. personnel and conducting attacks against U.S. interests and allies in the Middle East.

Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley emphasized the importance of these measures, stating, 'Treasury is targeting Iran-backed militia groups responsible for the deaths of U.S. personnel.' He further noted, 'Cutting off their financial flows is essential to protecting American lives and our national security.'

Key entities and individuals sanctioned for their ties to militias include:

• Kata'ib Hizballah, a U.S.-designated foreign terrorist organization, and its affiliated entities.
• Muhandis General Company for Construction, Engineering, Mechanical, Agricultural, and Industrial Contracting, accused of diverting Iraqi government contracts to fund militia operations.
• Baladna Agricultural Investments, sanctioned for channeling funds and facilitating weapons smuggling.
• Iraqi banking figures, including Aqeel Muftin (President of Iraq's National Olympic Committee) and his brother Ali Muftin Khafeef Al Baidani, for managing a bank linked to Iran's Islamic Revolutionary Guard Corps (IRGC) and laundering funds.
• Ali Mohammed Ghulam Hussein Al Anssari, accused of exploiting his leadership roles across multiple Iraqi banks to launder funds for Iranian proxy groups.

These militias are also accused of actively undermining the Iraqi economy, monopolizing resources through graft and corruption, and hindering the formation of a functioning Iraqi government.

Continued Maximum Pressure Campaign

These actions are part of the Trump Administration's ongoing campaign of maximum economic pressure on Iran, building on previous sanctions in July and August. The measures are primarily taken pursuant to Executive Order (E.O.) 13902, which targets Iran's petroleum and petrochemical sector, and E.O. 13224, which targets terrorists and their supporters. The U.S. government reiterated its commitment to disrupting financial and logistical networks that sustain Iran's malign activities and its proxy forces.