Treasury aims new sanctions at Iran’s missile, UAV programs

The U.S. Treasury Department’s Office of Foreign Assets Control announced new sanctions on Wednesday targeting 32 people and entities that facilitate Iran’s production of ballistic missiles and unmanned aerial vehicles.

Those named in the sanctions operate global procurement networks that threaten regional security by helping Iran reconstitute its missile and UAV programs, according to a release from the OFAC. Much of Iran’s missile production capacity was wrecked amid Israeli and U.S. bombs in June. 

“Across the globe, Iran exploits financial systems to launder funds, procure components for its nuclear and conventional weapons programs, and support its terrorist proxies,” Undersecretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley said in a release.

“At the direction of President Trump, we are putting maximum pressure on Iran to end its nuclear threat. The United States also expects the international community to fully implement UN snapback sanctions on Iran to cut off its access to the global financial system.”

A large section of the new sanctions targets procurement organizations responsible for delivering missile propellant ingredients to Iran. One such organization, the “MVM partnership,” has delivered “hundreds of metric tons” of propellant ingredients to Iran from China since 2023. Such ingredients include sodium chlorate, sodium perchlorate and sebacic acid, according to OFAC.

The sanctions also target individuals connected to the Iranian Kimia Part Sivan Co., which manufactures UAVs. OFAC names two companies, Baspar Puya and Pars Navandishan Artificial Intelligence Projects, that improve and repair UAVs. 

Iran’s Shahed drones have become instrumental in Russia’s war with Ukraine, and Iran has partnered with Moscow to assist in their production.

Wednesday’s OFAC sanctions are meant to support the reimposition of U.N. punishment, triggered through the snapback mechanism of the Iranian nuclear deal on Sept. 27. 

“The United States will continue to use all available means, including sanctions on entities based in third countries, to expose, disrupt, and counter Iran’s procurement of equipment and items for its ballistic missile and UAV programs, which jeopardize regional security and international stability,” State Department spokesman Tommy Pigott wrote in a statement. 

The sanctions are the latest attempt by U.S. authorities to isolate the Islamic Republic as Tehran seeks ways to avoid the worst effects of snapback sanctions. Last month, OFAC announced sanctions against shadow vessels, which facilitate the export of Iranian oil. The ships, which are typically unregistered, help heavily sanctioned countries transport goods for profit. 

Iran’s oil exports are the regime’s main source of revenue, with China purchasing millions of barrels each year. Recent estimates suggest that heavy U.N. and U.S. sanctions have not significantly curbed oil sales between Iran and China.