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US Sanctions 35 Individuals, Entities To Dismantle Iran's Shadow Banking

Zero Rss
3 months 2 weeks ago
US Sanctions 35 Individuals, Entities To Dismantle Iran's Shadow Banking

Authored by Kimberly Hayek via The Epoch Times (emphasis ours),

The U.S. Treasury Department on April 28 imposed sanctions on 35 individuals and entities accused of running Iran’s secret shadow banking network.

US Treasury Secretary Scott Bessent speaks during a press briefing in the Brady Briefing Room at the White House in Washington, on April 15, 2026. Brendan Smialowski/AFP via Getty Images

Treasury has accused the network of transferring tens of billions of dollars to help Iran dodge U.S. sanctions and finance terrorism.

The Department of the Treasury’s Office of Foreign Assets Control is sanctioning a network of shell companies, exchange houses, and operators connected to Iranian banks, such as Shahr Bank, that have enabled the Islamic Revolutionary Guard Corps (IRGC) and other Iran-backed armed forces to gain access to the international financial system.

U.S. officials said the networks facilitate payments for illicit Iranian oil sales, purchases of missile components, and transfers to Tehran’s terrorist proxies.

“Iran’s shadow banking system serves as a critical financial lifeline for its armed forces, enabling activities that disrupt global trade and fuel violence across the Middle East,” Secretary of the Treasury Scott Bessent said in a statement.

“Illicit funds funneled through this network support the regime’s ongoing terrorist operations, posing a direct threat to U.S. personnel, regional allies, and the global economy. Financial institutions are on notice: Any institution that facilitates or engages with these networks is at risk of severe consequences.”

Those targeted on Tuesday include the Farab Soroush Afagh Qeshm Company, described as overseeing fund movements for Shahr Bank’s clients through foreign front companies. Sorayya Mehri Hajibaba, an employee and foreign exchange expert, was sanctioned for facilitating transfers since at least mid-2023. And Seyyed Mohammed Mehdi Al Ghafur, an Iran-based shadow banking official, was targeted for laundering money on behalf of Shahr Bank via exchange houses.

The action also included the previously sanctioned HMS Trading FZE, along with its Iran-based sister company Tejarat Hermes Energy Qeshm Company. UK-based Shuqun LTD and its owner, Janelyn Eusebio Emperador, drew sanctions for transferring more than $70 million in payments for Iranian crude oil and distillates through 2024 on behalf of the National Iranian Oil Co. Emperador also controls Sanovo LTD and Qianza LTD.

Additional rahbar companies, which oversee shell company networks to process payments tied to Iran’s imports and exports and are linked to major Iranian banks, received sanction designations for operating in the financial sector.

The Treasury also issued new guidance threatening sanctions for entities that make “toll” payments to the Iranian regime or the IRGC in exchange for traversing the Strait of Hormuz.

Conducted under the Treasury’s “Operation Economic Fury,” the move follows earlier sanction efforts, with Bessent saying on Monday that doing business with sanctioned Iranian airlines could mean U.S. sanctions, as he called on foreign governments to block support services for those aircraft as commercial flights resume from Tehran.

The Treasury Department on April 24 sanctioned a Chinese refinery and 40 shipping firms and vessels found to be providing a lifeline to the Iranian oil economy. This came after a March 20 announcement by the United States that it had sanctioned entities it says are tied to the petroleum trade between Iran and China.

Since February 2025, the United States has sanctioned approximately 1,000 Iran-linked persons, vessels, and aircraft in its maximum-pressure campaign.

Sanctions were levied under Executive Order 13902, targeting Iran’s financial sector, and under Executive Order 13224, for counterterrorism. They bar all property of the designated parties under U.S. jurisdiction and prohibit U.S. persons from most dealings with them. Foreign parties also risk penalties for causing violations or evading the rules.

Tyler Durden Wed, 04/29/2026 - 11:15
Tyler Durden

OPEC +/-

Zero Rss
3 months 2 weeks ago
OPEC +/-

By Bas van Geffen, Senior Macro Strategist at Rabobank

Brent futures topped $115/barrel, after news broke that US President Trump rejected Iran’s proposal to reopen the Strait of Hormuz. According to CNN’s sources, Iran is expected to submit a revised proposal in the next few days. However, it is unclear why Trump would accept this new version, unless Iran is suddenly willing to make concessions on its nuclear program.

Meanwhile, Reuters reports that US intelligence agencies are studying how Iran would respond if President Trump simply declared victory – suggesting that pressure on the president to end the war quickly is building. However, the White House states that they will “not be rushed into a bad deal.” Indeed, as the Wall Street Journal reports, the President prefers “decisive victories” and told his aides to prepare for an “extended blockade.” Military options remain on the table, but Reuters’ sources note that the cost of a full-scale war is now higher than it was at the start of the ceasefire. Iran has used the time to dig out materiel that was buried in the US bombings.

In short, negotiations between the two sides remain as stuck as the ships trapped in the Persian Gulf. And odds of a military campaign that quickly breaks the stalemate appear to have lessened. So, with no end in sight for the closure of Hormuz, futures prices are closing in on physical prices.

But news that the United Arab Emirates will withdraw from OPEC as of 1 May stemmed the advance of futures prices. The Ministry of Energy says the government decided to OPECxit, as the country wants to grow its output “based on national interest” and its commitment to “meet the market’s pressing needs.” But, as our energy strategists note, this does not change anything about the near-term supply-demand balance. Only after the Iran war ends, and the Strait of Hormuz reopens can we discuss the UAE ramping up oil production.

But the UAE’s departure could have broader ramifications for both OPEC and the region. If other countries follow the example set by the Emirates, it erodes the OPEC’s cartel.

The balance of powers in the region already seems to be shifting. The announcement followed days after the UAE negotiated a dollar swap line with the US, and after Israel sent an Iron Dome system and personnel to operate the air defences to the country. And it emphasises the growing rift between the UAE and Saudi Arabia, as the UAE moves more clearly into the US camp – which includes Israel.

As gradually as financial markets seem to be pricing in the impact of the war in Iran, so quickly are consumers taking it into account. Inflation expectations have risen rapidly in the latest round of the ECB’s Consumer Expectations Survey. The sharp increase in 1-year expectations is not too surprising, but notably consumers’ expectations of inflation 3 years ahead rose equally quickly – from 2.5% to 3.0%.

That puts medium-term inflation expectations back around the highs of the Russian gas crisis, even though the relative price shock has been much more muted so far. It suggests that memories of the previous energy crisis are making consumers more wary of new price shocks. We would not consider this a de-anchoring of inflation expectations yet, but it does underscore the risk that second-round effects could take hold via wage or price setting more quickly.

This adds some pressure on the ECB to act this week already. Our base case remains a hold, but the survey suggests that the probability of a hike may be a bit higher than the 10% implied by money markets. In any case, policymakers will not be very comfortable with their decision.

Adding to that unease, Bruegel has calculated that about 80% of EU governments’ energy support measures are untargeted. The largest commitments are directed towards lowering fuel excise duties or VAT. As Bruegel notes, that is contrary to the recommendations of the European Commission and the European Central Bank. At €10.5 billion, the total amount committed to energy support measures is still small, but untargeted measures increase the risk that the energy price shock could become a broader and more persistent inflationary pressure

Tyler Durden Wed, 04/29/2026 - 11:00
Tyler Durden

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