US Targets Iran's Banking System with New Sanctions Amid Ongoing Negotiations

The Trump administration announced its eighth round of Iran-related sanctions on Friday as diplomats continue to negotiate over the Strait of Hormuz. The new sanctions target Iran's banking system and companies in multiple countries that allegedly launder hundreds of millions of dollars.

Treasury Secretary Scott Bessent stated that 'every facilitator that keeps the regime afloat is putting a target on its own back.' The Treasury Department designated Shahr Bank, which it claims helped Iranian exporters retrieve oil revenue, as well as two Dubai-based exchange houses and several Iranian nationals. A cluster of shell companies in Hong Kong, Singapore, and Dubai was also sanctioned.

The sanctions are part of the Trump administration's effort to apply economic pressure on Iran to reopen the Strait of Hormuz and end the war that has been ongoing for six months. The Treasury Department's Office of Foreign Assets Control (OFAC) separately sanctioned former Fly Baghdad CEO Basheer Abdulkadhim Alwan al-Shabbani for allegedly helping the Islamic Revolutionary Guard Corps-Qods Force move fighters, weapons, and money to militia groups in the region.