New U.S. sanctions target Iran’s drone program
The U.S. Department of the Treasury affirmed its readiness to take economic measures against Iran’s military industrial base to prevent Tehran from rebuilding its production capacity.
Washington imposed sanctions on 10 individuals and companies, some based in China and Hong Kong, accused of helping the Iranian military obtain weapons and raw materials used in the manufacture of “Shahed” drones.
This move by the Treasury Department comes days before U.S. President Donald Trump’s scheduled visit to Beijing to meet his Chinese counterpart Xi Jinping, at a time when efforts to end the war in Iran are faltering.
In a statement, the department said it remains prepared to take economic action against Iran’s military industrial base to prevent Tehran from restoring its production capacity.
It added that it is also ready to act against any foreign company supporting illegal Iranian trade, including airlines, and can impose secondary sanctions on foreign financial institutions assisting Iran in its efforts, including those linked to private Chinese oil refineries.
Treasury Secretary Scott Bessent said in a statement: “Under President Trump’s decisive leadership, we will continue working to safeguard America’s security and target foreign individuals and companies that supply weapons to the Iranian military for use against U.S. forces.”
Brett Erickson, managing director at Obsidian Risk Advisors, said the Treasury’s measures aim to limit Iran’s ability to threaten vessels operating in the Strait of Hormuz and regional allies.
Iran closed the Strait of Hormuz, a narrow maritime passage between Iran and the Sultanate of Oman through which one-fifth of global crude oil and liquefied natural gas shipments pass, after the United States and Israel attacked numerous targets in Iran on February 28. Shipping traffic through this vital passage has nearly halted since the war began, causing a sharp rise in energy prices.
According to the UK government-funded Centre for Information Resilience, Iran is one of the world’s largest drone manufacturers and has the industrial capacity to produce around ten thousand units per month.
Erickson noted that the sanctions remain narrowly focused, giving Iran more time to adapt and shift procurement to other suppliers. He added that the Treasury Department has not yet begun targeting Chinese banks that help sustain Iran’s economy.
Companies facing sanctions include “Yoshita Shanghai International Trade Co Ltd,” based in China, sanctioned for its involvement in facilitating Iran’s efforts to procure weapons from China.
The sanctions also targeted “H.K. Hesen Industry Co Ltd,” based in Hong Kong, and “Armory Alliance LLC,” based in Belarus, for acting as intermediaries in procurement operations, as well as “Mostad Ltd,” which facilitates weapons acquisitions by the Islamic Revolutionary Guard Corps.
The measures also include the Iranian company “Pishgam Electronic Safeh Co” for supplying engines used in drones, and “Hitex Insulation Ningbo Co Ltd,” based in China, for supplying materials used in ballistic missiles.
