US imposes new sanctions against Iran's terror proxy groups' trade network
The US Treasury Department issued sanctions targeting Houthi and Hezbollah trade networks on Thursday as Washington seeks to increase pressure on Tehran and its terror groups.
The new sanctions targeted companies, individuals and vessels involved in the shipment of Iranian commodities, including oil and liquefied petroleum gas (LPG) to Yemen and the UAE on behalf of a Houthi financial official's network.
“Today’s action underscores our continued commitment to disrupting Iran’s primary source of funding to its regional terrorist proxies like Lebanese Hezbollah and the Houthis,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith in a statement Thursday.
“Our message is clear: those who seek to finance these groups’ destabilizing activities will be held to account.”
In addition to targeting the network of Sa’id al-Jamal, OFAC is also designating Hong Kong-based Kai Heng Long Global Energy Limited for its role in "shipping Iranian LPG worth tens of millions of dollars" for Iran-backed Hezbollah.
The sanctioned entities include Palau-flagged LPG tankers LPG OM and RAHA GAS, owned by Marshall Islands-registered companies KDS Shipping Limited and Arafat Shipping Company, respectively, which the Treasury said have been linked to illicit shipments for the Sa’id al-Jamal network.
The RAHA GAS, captained by Indian national Arif Ibrahim Khot, falsely labeled shipments as originating from the UAE and delivered them to Yemen.
UAE-based ONX Trading FZE facilitated payments for the operations. The DIVINE POWER, owned by DP Shipping Limited, also shipped fuel oil for al-Jamal’s network, including a transfer with the US-sanctioned MEHLE.
These entities, along with Malaysia-based Transmarine Navigation and UAE-based K F D General Trading, are now sanctioned by the US for supporting the al-Jamal network. Additionally, Hong Kong-based Kai Heng Long Global Energy Limited who managed multiple LPG tankers linked to Iranian LPG shipments was sanctioned on Thursday.
The OFAC designated Sa’id al-Jamal in 2021 for having supported the Houthis and its illegal trading network in order to fund Iran’s Islamic Revolutionary Guard Corps Qods Force (IRGC-QF), which was designated by the US in 2007 for its support of terror groups.
The Houthis were re-designated by the US in January after three months of a blockade by the terror group saw US shipping targeted with a series of attacks. The blockade began in November after orders from Iran’s Supreme Leader, Ali Khamenei, to blockade the trade route, targeting Israeli-linked ships in support of the Iran-backed Hamas war in Gaza.
In retaliation to the Houthi blockade, the US and UK have launched direct attacks on Houthi infrastructure in Yemen with the US leading a more than 20-nation coalition to battle Iran’s proxy armed with state-of-the-art missiles and drones. In February, the action led the Houthis to declare both the US and UK targets in its blockade which began against Israel.
The University of Tehran has announced an increase in the admission of members of Hashd al-Shaabi, the Iranian-backed Shiite militia in Iraq, without the need for entrance exams.
Mohammad Moghimi, President of the University of Tehran, announced Thursday that these students do not receive military training at the university and instead study management though it is widely known that Iraqi militias are trained in Iran.
The Hashd al-Shaabi, or Popular Mobilization Forces (PMF), was established in 2014 following a religious decree to combat ISIS, which at the time had taken control of four Iraqi governorates and threatened Baghdad.
While the Iraqi state-sponsored umbrella organization is largely composed of Shia Muslim groups, it also includes Sunni Muslim, Christian, and Yazidi factions with an estimated 128,000 fighters across 67 different armed factions.
Iraqi Shiite Muslims from the Popular Mobilization Units (Hashd al-Shaabi) march during a parade marking the annual Quds Day, or Jerusalem Day, in Baghdad, Iraq, June 23, 2017.
The University of Tehran's decision to welcome the militia members without standard academic requirements signals a concerning trend. Official reports last year highlighted a "cooperation and agreement" between the Hashd al-Shaabi and the University of Tehran to facilitate the education of these fighters.
Moghimi disclosed in his Thursday interview with the IRNA news agency that Iraqi officials have expressed dissatisfaction with the "insufficient quality" and low standards of some Iranian universities educating PMF students. To address the concerns, Iraqi authorities have requested the University of Tehran step in and help "repair this reputational damage."
Iraqi Prime Minister Mustafa al-Kadhimi during a military parade by Iran-backed Shiite militia Hashd al-Shaabi, in the town of al-Khalis, Diyala province, eastern Iraq, on July 23, 2022
He said the influx of the Hashd al-Shaabi members into Iranian universities, particularly the University of Tehran where admission for Iraqis has doubled, is part of a broader plan.
These students, according to Moghimi, many of whom are relatives of active, deceased, or wounded militia from the so-called "resistance front," are being groomed with the help of substantial Iraqi government funding to assume leadership roles back home.
Moghimi paints a rosy picture of the Hashd al-Shaabi members, describing them as deserving individuals committed to "advancing Islamic ideals."
Moghimi claims that there are also economic benefits behind admitting the Hashd al-Shaabi members, stating that they pay almost 1,200 euros per semester for undergraduate studies, compared to 80 to 90 million rials (130-150 $) for Iranian students.
Hashd al-Shaabi militias
In late July of last year, a group of student activists at the University of Tehran issued a statement condemning the presence of the Hashd al-Shaabi forces and similar individuals at Iranian universities as a "military invasion of the university."
They vowed to resist such admissions, emphasizing that the university has already been emptied of genuine students through "dismissals, suspensions, and repression," and turned into a stronghold for "so-called affiliated professors and Basij militia members."
Last year, Moghimi dismissed protests against the admission of the Hashd al-Shaabi members as "the anger of traitors." Now, he tries to justify these admissions by pointing out that "the education of individuals, managers, and regional officials" has always been a practice at the university, citing Nechirvan Barzani, the Prime Minister of the Kurdistan Region and an alumnus of the University of Tehran, as an example.
Vice-President Mohammad-Reza Aref has been accused of ‘misogyny’ after saying the Iranian society is not ready to give women leadership roles.
“Our society is not yet psychologically ready for women’s leadership,” Aref remarked in a video clip released by several media outlets during a ceremony bidding farewell to outgoing Women’s and Family Affairs Deputy Ensieh Khazali and introducing her successor, Zahra Behrouz-Azar.
The controversial remark was made in response to Khazali who criticized the reform-oriented Pezeshkian’s government for nominating only one female minister although there had been no female ministers in Ebrahim Raisi’s hardline-dominated government.
Some media and social media users interpreted Aref’s remarks as an excuse not to use more women in the higher echelons of Pezeshkian’s government that was supposed to be more reform oriented. Many also accused him of ‘misogyny”.
A longer version of the speech was later released, which suggested that Aref was actually criticizing the limited role of women in the government, rather than endorsing it. “Look at the indicators of girls versus boys’ academic progress. I’m sure our girls are ahead in most areas,” he stated, adding that the government's ideal is "no discrimination between men and women."
Aref also appeared to be expressing a concern that hardliners may not accept Farzaneh Sadeghi-Malvajerd, Pezeshkian’s only female cabinet nominee. “Let us get a vote of confidence for this one and later use [more women in such posts],” he says in the fuller version.
Sadeghi-Malvajerd, 55, who Pezeshkian has nominated to lead the Ministry of Roads and Construction is currently a deputy minister. In his speech, Aref said those opposed to her appointment ask whether a female roads and construction minister will be required to visit road construction sites.
If approved by the parliament, she will be the second female minister in the more than four-decade-long history of the Islamic Republic where not only politicians but also some influential Shia religious ‘sources of emulation’ strongly oppose giving women leading roles in the government.
Many, including the so-called ‘Islamic feminists’ oppose ‘patriarchal interpretations of Sharia’ which they say prevent women from running for president or female judges from presiding in courts of justice and the unwritten rules that do not allow women to be appointed to positions of power in the government.
Iranian women have also been fighting for decades against highly discriminatory laws, including family and inheritance laws, that are based on Sharia or only Shia tradition.
Some critics such as journalist Elahe Khosravi who believes Aref is oblivious to the Woman, Life, Freedom movement say the Vice-President has unjustly blamed the “society” and accused people of prejudice instead of admitting that it is the ruling establishment that has deprived women of their rights and opposes their progress.
“Aref is right. Our society is not prepared for women’s leadership because we are still stuck with the Islamic Republic and the repugnant absolute rule of the Islamic jurist,” student and women’s rights activist Motahare Goonei tweeted. A woman who demands more than what the “patriarchal system allows” is considered a criminal and punished, she said.
Another critic on X accused Aref of lying about the Iranian society. “Who says the society does not accept women’s leadership? He has put forth a false premise and lied about the people and the society. It would be okay if he said clerics oppose it as the society and people have no objection to women’s leadership.”
During the presidential debates, Pezeshkian criticized hardliners in the parliament of blocking a Rouhani administration bill to stop violence against women, discrimination against women, and harsh enforcement of hijab and promised to use more women in his government.
The family of Arezou Badri, a 31-year-old woman shot by Iran’s police on July 22 for allegedly violating mandatory hijab laws, is under intense government pressure to withdraw their complaint.
Badri, a mother of two, was left paralyzed after the shooting, an incident that has ignited outrage both within Iran and on the international stage.
The family's complaint regarding Badri, who suffered severe spinal cord injuries and remains hospitalized at Valiasr Hospital in Tehran, was heard in a court this week. However, the family remains dissatisfied with the outcome and the judicial process.
Iran International has learned that she underwent another surgery on Wednesday to remove fluid accumulated in her lungs, and her condition remains critical.
According to our sources, the Badri family members have been summoned by intelligence and security agencies, pressured to stay silent, and urged to withdraw their complaint.
Sources revealed that the family, including Badri's sister, is under intense pressure from security agencies to deliver a coerced confession on camera regarding Badri's situation.
The attack on Badri took place when she was stopped at a police checkpoint while returning home with her sister after work in Noor, Mazandaran province.
According to reports and images obtained by Iran International, the police opened fire after stopping the car on a dirt road, striking Badri in the back.
A warrant for the confiscation of Badri's vehicle over an earlier alleged hijab violation led police to open fire from the rear driver's side. Sources told Iran International that Badri was initially taken to a hospital in Noor before being transferred to Imam Khomeini Hospital in Sari. Since then, her family has faced intense pressure from security forces to stay silent about the shooting and her condition.
After several days, plainclothes security officers moved Badri to Tehran for further treatment, where her spinal condition remains critical. During visits, security officers reportedly confiscate the Badri family’s mobile phones to prevent them from taking photos or videos.
The Information Center of the Mazandaran Police Command confirmed the police shooting at the car in which Badri was a passenger, stating that the driver "continued to flee despite police orders, prompting the police to shoot at the car according to the law on the use of firearms."
Sources informed Iran International that despite police claims that Badri’s car had tinted windows, they were down at the time of the incident due to the heat and lack of air conditioning in the vehicle.
Amnesty International on Wednesday called for a thorough investigation into reports that Badri was shot and left paralyzed by police while enforcing compulsory veiling laws in Iran. The organization urged that "those responsible be held to account," highlighting the urgent need to abolish veiling laws and address Iran’s "impunity crisis."
Prominent Iranian activist and journalist Masih Alinejad denounced the attack on Badri, writing on X that "the morality police shot this woman and paralyzed her over a hijab." Alinejad stressed that "regardless of who is president" in Iran, women continue to suffer for simply showing their hair, urging others to "be her voice."
Israeli Foreign Minister Israel Katz also weighed in, describing the attack on Badri as a reflection of Iran’s Supreme Leader Ali Khamenei’s “murderous dictatorship,” which he said oppresses citizens and enforces “radical Islam.”
The incident is reminiscent of previous cases, such as that of Armita Geravand, a 16-year-old who was injured and went into a coma after being attacked by hijab enforcement officers at Tehran's Shohada Metro Station on October 1 of last year. She died on October 27 after 28 days in Fajr Military Hospital.
Similarly, in September 2022, Mahsa Zhina Amini, a 22-year-old woman, fell into a coma after being arrested by Iran’s morality police. Amini was reported dead on September 16 at Kasra Hospital which sparked nationwide protests, leading to the "Woman, Life, Freedom" uprising.
The US Justice Department has indicted a 68-year-old Iranian-American for the illegal export of US-manufactured aircraft components, including military-grade parts, to Iran.
Jeffrey Chance Nader was apprehended on Tuesday in California and according to the indictment, he conspired with others to purchase and illegally export nearly three dozen aircraft components from the United States to Iran. Many of the parts are crucial for the operation of military aircraft like the F-4 fighter jet, used by Iran's armed forces.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division emphasized the seriousness of the charges, stating, “This action demonstrates the Justice Department’s commitment to keeping military-grade equipment out of the hands of the Iranian regime. We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of US sanctions.”
The sentiment was echoed by US Attorney Matthew M. Graves for the District of Columbia, who highlighted the broader implications of Nader’s actions.
“Attacks by Iran and its proxies on US allies in the Middle East and its ongoing supply of Russia with drones and other technology to be used in its illegal war against Ukraine demonstrate why we must do all that we can to stop Iran from acquiring US parts, services, and technology," he said.
The indictment reveals that Nader acted on purchase orders from customers in Iran, using his California-based company, Pro Aero Capital, to falsely present himself as the end-user of the components.
He attempted to ship the parts to the United Arab Emirates (UAE), where they were intended to be transshipped to Iran but were intercepted by US authorities, preventing the items from reaching their intended destination.
The case is part of a broader pattern of US law enforcement targeting networks that attempt to supply Iran with advanced technology. Just last week, the DOJ indicted two Iranians brothers Shahab Mir’kazei and Yunus Mir’kazei and a Pakistani national, Muhammad Pahlawan, for providing material support to Iran’s weapons program.
The US also recently announced a $10 million reward for information leading to the identification or location of six Iranian government hackers responsible for a series of cyberattacks on US water utilities last fall.
They are accused of compromising industrial control systems, specifically targeting the Vision series of programmable logic controllers (PLCs) produced by Israel-based Unitronics. These PLCs are extensively used across various sectors, including water and wastewater management, energy, food and beverage production, manufacturing, and healthcare.
According to a State Department statement, the six individuals, who are associated with Iran’s Islamic Revolutionary Guard Corps (IRGC) and its Cyber-Electronic Command (IRGC-CEC), are being actively sought in connection with the attacks.
Future prisoner swaps between the US and Iran could complicate the long-term impact of such indictments, however. In past instances, high-profile detainees have been released in exchange for some dual nationals held in Iran, raising concerns about the lasting efficacy of such legal actions.
In September, a deal was finalized involving the transfer of $6 billion in Iranian funds—previously held in South Korea—to banks in Doha. As part of the agreement, five Iranians were released from US custody, though three of them opted not to return to Iran.
Among the Americans freed by Iran were Siamak Namazi, who endured nearly eight years in Tehran's notorious Evin prison before his release.
An unknown number of dual-nationals are being held in Iran under trumped-up charges of espionage as the government continues its policy of diplomatic hostage-taking.
As Iran's economic situation continues to deteriorate and the rial loses value, citizens have increasingly turned to purchasing gold, foreign currency, and moving capital out of the country.
Over the past year, the Iranian rial has lost 20% of its value, and in the past three years under President Ebrahim Raisi, it has plummeted by 60%.
The crisis in the stock and real estate markets has discouraged people from investing in these sectors, leading to the withdrawal of over 1,600 trillion rials ($2.6 billion, based on the current USD rate in open markets) from the stock market over the past three years.
In just the first week of August, approximately 20 trillion rials ($33 million) were withdrawn from the Iranian stock market. The real estate market is also in a severe recession, exacerbated by Iran's chronic electricity shortages in the summer and significant gas deficits in the winter. These energy shortages have particularly impacted the construction sector, with power cuts in cement factories causing cement prices to double and halting construction and housing projects nationwide.
With the worsening economic conditions, particularly in the industrial and construction sectors, citizens are increasingly investing in gold, foreign currencies, or moving their capital abroad to preserve their assets. According to the World Gold Council, Iranian citizens’ purchases of gold coins and bars have surged from 25.5 tons in 2011 to nearly 42 tons in 2022, and 44.4 tons last year. In the first half of this year alone, they have purchased more than 22 tons of gold coins and bars.
On the other hand, data from the Central Bank shows that capital flight from the country has been on an upward trend since the imposition of US sanctions against Iran in 2018, rising from $350 million in 2018 to $15 billion last year. In the first nine months of the last fiscal year (March 2023–January 2024), capital flight reached $20.1 billion, a historical record.
No official reports have been published on Iranians' foreign currency holdings, but it appears that government restrictions on the supply of hard currencies like the euro and US dollar have not deterred people from converting their rial assets into foreign currencies. Despite a government ban on holding more than 10,000 euros or dollars, many citizens feel compelled to convert their rial savings into foreign currencies to protect their wealth.
Lotfollah Siahkali, a member of the Parliament’s Industries Commission, stated last year that Iranian citizens held $60 billion in foreign currency reserves, while the Central Bank's governor cited a much lower figure of $16 billion. This discrepancy suggests that even the government may not have an accurate understanding of the amount of foreign currency held by the public in Iran’s chaotic financial system.
Regardless of the exact figure, the presence of even $16 billion in foreign currency stored in people's homes poses a significant challenge for the Iranian economy, which is already grappling with a liquidity shortage in the industrial and construction sectors. This amount is equivalent to half of Iran’s oil export revenues from last year. If the $60 billion estimate is accurate, it would represent approximately 16% of Iran’s GDP.
The core issue is that Iranians lack trust in the Islamic Republic and its flawed economic policies, making it unlikely that people will reintegrate their foreign currency assets into the country’s economy. It's important to note that these figures represent the savings of a small segment of Iran’s affluent population. According to official statistics, more than half of the population lives below the poverty line, struggling to afford basic necessities.
Meanwhile, the government faces a massive budget deficit each year and is forced to borrow from the Central Bank and other financial institutions, exacerbating liquidity issues and further devaluing the rial. Central Bank data shows that from 2021 to 2023, government debt to the country’s banks has more than doubled, exceeding 13,000 trillion rials ($22 billion). Additionally, the Iranian government owes $100 billion to the National Development Fund. As a result, liquidity has also doubled, and the rial has lost 60% of its value.