In a bold move to block Iran’s access to money that funds violence in the Middle East, the United States has placed powerful new sanctions on a hidden oil smuggling network. This operation is believed to be worth billions of dollars and has been secretly moving Iranian oil disguised as Iraqi crude since at least 2020.
US Strikes at Billion-Dollar Smuggling Operation
US Treasury Department announced that it had uncovered a network of companies and individuals involved in the scheme. These groups reportedly shipped Iranian oil across borders, pretending it came from Iraq to avoid international restrictions. The oil was sold in markets where it shouldn’t have been, and the profits are suspected to support Iran’s military efforts and militant groups in the region.
The network is described as highly organised, with companies and fake paperwork used to make Iranian oil appear legal. The goal, according to US officials, is to dry up the money used by Iran to support violence and armed groups like Hezbollah, which the US considers a terrorist organisation.
These sanctions are part of a broader push by the United States to stop Iran from gaining money through illegal oil sales, especially ahead of nuclear talks planned for next week.
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Hezbollah-Linked Financial Firm Also Targeted
In addition to targeting the oil smuggling network, the US government also placed sanctions on a financial institution linked to Hezbollah. This group, backed by Iran, has been involved in regional conflicts and has a long history of receiving financial and military support from Tehran.
The financial firm is believed to play a key role in moving money for Hezbollah, helping them buy weapons and carry out operations in different parts of the Middle East. By freezing its assets and cutting it off from the global financial system, the US hopes to weaken the group’s ability to operate.
The Treasury Department said that disrupting the cash flow to Hezbollah is an important step in maintaining peace and reducing threats in the region. Cutting off this funding also makes it harder for Iran to maintain its influence through armed groups.
US officials say they will continue targeting any business or group that helps Iran or its proxies avoid sanctions.
Tensions Rise Ahead of Nuclear Talks in Oslo
The timing of these new sanctions is no coincidence. They come just days before the US and Iran are set to begin indirect talks in Oslo about Iran’s nuclear programme. However, relations are already tense.
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Just last month, the US military carried out strikes on three key Iranian nuclear sites. One of these sites was Fordow, a deeply buried facility that has been used to enrich uranium. US officials said the strikes may have set back Iran’s nuclear efforts by as much as two years.
This military action, combined with the new financial pressure, adds to the already strained relationship between the two nations. Iran has long been under tight sanctions because of its nuclear activities and its support for armed groups across the Middle East.
A 2023 investigation found that a large fuel-oil smuggling ring in Iraq may be bringing in over $1 billion a year for Iran and its allies. Much of this money is suspected to be helping fund military and militant actions. The US is now aiming to stop these funds in their tracks.
The sanctions are designed to freeze the assets of those involved, block their bank accounts, and make it nearly impossible for them to do business internationally. This is part of a bigger effort to prevent Iran from using secret methods to get around global rules.
With new sanctions in place and tensions rising, all eyes are now on the upcoming talks in Oslo. But the deep mistrust and recent actions may make any agreement even harder to reach.