The US has announced sanctions against 10 individuals and companies, including several in China and Hong Kong, over accusations they aided Iran’s efforts to secure weapons and the raw materials needed to build its Shahed drones and ballistic missiles.
The US Treasury’s last night move comes days before US President Donald Trump plans to travel to China for a meeting with President Xi Jinping and as efforts to end the war with Iran have stalled.
In a statement, US Treasury said it remains ready to take economic action against Iran’s military-industrial base to prevent Tehran from reconstituting its production capacity.
Treasury said it is also prepared to act against any foreign company supporting illicit Iranian commerce, including airlines and could impose secondary sanctions on foreign financial institutions that aid Iran’s efforts, including those connected to China’s independent “teapot” oil refineries.
Experts say the Treasury’s actions were aimed at cracking down on Iran’s ability to threaten ships operating in the Strait of Hormuz and regional allies.
Iran shut the Strait of Hormuz, a narrow chokepoint between Iran and Oman through which a fifth of the world’s crude oil and liquefied natural gas passes, after the U.S. and Israel attacked a large number of targets in Iran on February 28.
Shipping through the crucial waterway has ground to a near halt since the war began, sending energy prices sharply higher.
Iran is a major drone manufacturer and has the industrial capacity to produce around 10,000 a month.
