The U.S. government announced on Thursday (September 10) a new round of sanctions targeting individuals and entities in Iraq, Lebanon, United Arab Emirates, and Turkey, alleging their assistance to Iran-backed groups like Hezbollah in Lebanon and Kata’ib Hezbollah in Iraq. The United States also further tightened trade permits related to Iran.
This latest move comes after the U.S. Treasury Department launched “Operation Economic Outcast” on August 24, aiming to cut off funding sources for Iran’s war, missiles, cyberattacks, and the Islamic Revolutionary Guard Corps (IRGC).
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced on Thursday sanctions on four Kata’ib Hezbollah commanders and members in Iraq, stating that the group receives training, weapons, funding, intelligence, and logistical support from Iran’s Islamic Revolutionary Guard Corps Quds Force (IRGC-QF) and exerts significant influence within the Popular Mobilization Forces (PMF) in Iraq.
The sanctions list also includes individuals involved in Iraq’s military procurement and Iranian sanctions evasion networks, including businessmen, companies, and financial intermediaries. A Dubai-based exchange house was cited for channeling millions of dollars from Iraq to Iran through UAE channels.
Another focus of these sanctions is the channel through which Iran funnels funds to Hezbollah in Lebanon. The U.S. Treasury Department mentioned that the IRGC Quds Force uses shell companies to transfer proceeds from Iranian oil sales to exchange dealers in the Middle East, who then pass it on to Hezbollah financial officers in Lebanon.
From May to September 2025, Lebanese businessmen and exchange dealers Hussein Ibrahim and Abdallah Hamieh reportedly transferred hundreds of millions of dollars to Hezbollah. These funds were then withdrawn upon entering Lebanon and used by Hezbollah to purchase weapons, manufacture equipment, and pay members’ salaries.
Furthermore, some individuals resorted to trading gold and cash to evade sanctions. One such sanctioned financier, Hamdi Zaher El Dine, controlled multiple gold and cash exchange institutions in Lebanon through relatives and associates, buying gold in Dubai through underground exchange and transporting it to Lebanon.
In addition to asset freezes and network sanctions, the U.S. has tightened its permit policy for transactions involving Iran. OFAC announced that moving forward, specific permit applications related to Iran will generally be subject to a policy of “presumed denial,” unless required by law or in specific circumstances such as life, safety, and environmental security. The department has also initiated the rejection of “the vast majority” of pending Iran-related permit applications.
The Treasury Secretary Scott Bessent stated that the “Operation Economic Outcast” aims to target individuals and networks continuing to support the Iranian regime. Whether funding terrorist activities, money laundering, or aiding Iran in evading sanctions, the U.S. is committed to locating and severing these links to the American financial system.
The U.S. Treasury Department also disclosed a sanctions enforcement case on the same day. An American citizen agreed to pay $1,427,230 to settle potential civil liability for 39 alleged violations of Iran sanctions regulations. This individual had provided management consultancy and advisory services to a major Iranian software solutions company, received dividends from Iran through a U.S. bank account, and purchased real estate in Iran.
According to Reuters, the U.S. Financial Crimes Enforcement Network (FinCEN) issued a report seeking information on Iran sanctions evasion, money laundering, and foreign agents and intermediaries on the same day.
A U.S. official cited by Reuters mentioned that under the joint impact of sanctions and U.S. naval blockades, Iran’s daily oil loading in the past 30 days has decreased to around 200,000 barrels, compared to approximately 1.8 million barrels from January to February this year. Unloading has also dropped from around 1.4 million barrels daily to about 900,000 barrels.
However, Brett Erickson, managing partner at Obsidian Risk Advisors, noted to Reuters that the latest round of sanctions may have limited impact on Iran’s ability to transfer hard currency. He pointed out that these measures primarily target networks like Hezbollah but do not include the Houthi rebels in Yemen that are currently affecting the global energy market.