Washington: The United States on Thursday announced a wide-ranging new round of sanctions against Iran, targeting senior security officials, a prison accused of systemic abuse of detainees, and a vast network of front companies allegedly used to launder billions of dollars from oil and petrochemical sales. The move comes as anti-government protests continue to spread across Iran, driven by public anger over economic hardship, inflation and political repression.
The coordinated action by the US State Department and the Treasury Department’s Office of Foreign Assets Control (OFAC) is aimed at what American officials described as the “architects” of the Iranian regime’s violent crackdown on peaceful demonstrators, as well as the financial structures that sustain the government’s repressive apparatus.
‘Standing With the Iranian People’: US
“This is about standing with the Iranian people,” US Treasury Secretary Scott Bessent said in a statement.
“At the direction of President Trump, the Treasury Department is sanctioning key Iranian leaders involved in the brutal crackdown against the Iranian people. Treasury will use every tool to target those behind the regime’s tyrannical oppression of human rights.”
Fardis Prison Sanctioned
At the centre of Thursday’s announcement is the designation of Fardis Prison, which the State Department said has been a site of “cruel, inhuman, and degrading treatment”, particularly of women and other detainees.
The sanctions freeze any assets the prison may hold under US jurisdiction and prohibit Americans from engaging in transactions involving it.
Top Security Officials Targeted
OFAC also sanctioned several senior Iranian security officials, including Ali Larijani, secretary of Iran’s Supreme Council for National Security. US officials say Larijani played a central role in coordinating the government’s response to protests that erupted in December 2025, and was among the first leaders to publicly call for the use of force against demonstrators.
Provincial commanders accused of overseeing violent crackdowns were also designated, including:
- Mohammad Reza Hashemifar and Nematollah Bagheri in Lorestan Province
- Azizollah Maleki and Yadollah Buali in Fars Province, home to the city of Shiraz
According to the Treasury Department, security forces in these regions killed numerous protesters, withheld bodies to coerce families, and forced relatives to provide false testimony on state television.
Allegations of Attacks on Hospitals
US officials further alleged that Iranian security forces fired live ammunition at crowds and, in some cases, attacked injured protesters in hospitals. In one incident in Ilam Province, elements of the Islamic Revolutionary Guard Corps (IRGC) allegedly fired tear gas and metal pellets inside hospital grounds and assaulted patients, family members and medical staff.
Crackdown on Iran’s ‘Shadow Banking’ System
Beyond individuals, the sanctions strike at what US officials called Iran’s financial lifelines. OFAC designated 18 individuals and entities linked to Iran’s so-called shadow banking networks — clandestine systems that rely on front companies and exchange houses to bypass international sanctions.
“These networks are the primary means through which Iran facilitates tens of billions of dollars’ worth of annual trade,” the Treasury said, adding that the funds are routinely diverted toward domestic repression and militant activities abroad rather than public welfare.
Banks, Front Companies Named
Two major state-linked banks — Bank Melli and Shahr Bank — were identified as hubs of this activity.
According to Treasury officials:
- Bank Melli operates a network of “rahbar” companies that manage international transactions through cover firms across multiple jurisdictions
- Key entities include Nikan Pezhvak Aria Kish Company (Iran), Empire International Trading FZE (UAE) and Golden Mist PTE Ltd. (Singapore)
- Since 2024, the network allegedly processed billions of dollars in transactions for the National Iranian Oil Company, the IRGC and the Central Bank of Iran, often using falsified invoices and layered transfers
Shahr Bank, meanwhile, was accused of running a similar operation through HMS Trading FZE (UAE) and Tejarat Hermes Energy Qeshm (Iran), supported by front companies across the Gulf and Europe. Several of these firms allegedly helped move tens of millions of dollars linked to Iranian oil shipments to Asia.
Legal Impact of the Sanctions
Under US law, the sanctions freeze all property and interests belonging to the designated individuals and entities that fall under US jurisdiction. US persons are barred from conducting business with them, and foreign companies or banks that continue dealings risk secondary penalties.
State Department spokesman Tommy Pigott said the measures are intended to cut Iran off from the global financial system.
“The United States stands with the Iranian people, who are protesting for their natural rights,” Pigott said.
“The regime continues to fund destabilising and malign activities around the world rather than investing in the welfare of its people at home.”
Part of ‘Maximum Pressure’ Campaign
The sanctions were imposed under multiple US executive orders and laws targeting human rights abuses, Iran’s leadership, and its energy and financial sectors. They further implement National Security Presidential Memorandum-2, part of what the Treasury describes as a renewed campaign of maximum economic pressure.
While US officials said the goal is to change Iran’s behaviour rather than punish for its own sake, Thursday’s sweeping action signals that Washington is prepared to escalate economic and diplomatic pressure as protests continue and Tehran shows little sign of backing down.