US imposes new sanctions against Iran oil trade and Lebanon’s Hezbollah

Move comes as Trump administration intensifies efforts to pressure Tehran into returning to nuclear negotiations and to clamp down on its proxies across the region

A man carries a poster showing assassinated Hezbollah leaders Hassan Nasrallah and Hashem Safieddine at a building damaged by Israeli strikes in Beirut, Lebanon. Reuters

The US has imposed new sanctions against a network that smuggles Iranian oil falsely presented as Iraqi oil and on a Hezbollah-controlled financial institution, the Treasury Department said.

A network of companies run by Iraqi-British national Salim Ahmed Said has been buying and shipping billions of dollars worth of Iranian oil disguised as, or blended with, Iraqi oil since at least 2020, the department said.

“Treasury will continue to target Tehran’s revenue sources and intensify economic pressure to disrupt the regime’s access to the financial resources that fuel its destabilising activities,” Treasury Secretary Scott Bessent said.

The US has imposed layers of sanctions on Iran's oil exports over its nuclear programme and funding of militias across the Middle East.

“As President Trump has made clear, Iran’s behaviour has left it decimated. While it has had every opportunity to choose peace, its leaders have chosen extremism,” added Mr Bessent.

The Treasury Department also issued sanctions against seven senior officials and one entity linked to Al Qard Al Hassan (AQAH), a Hezbollah-controlled financial institution. The armed Hezbollah group is Iran’s proxy in Lebanon.

“These officials, through their management roles, have facilitated Hezbollah’s evasion of sanctions, enabling AQAH to conduct millions of dollars in transactions through 'shadow' accounts,” said State Department spokeswoman Tammy Bruce.

This comes as the Trump administration intensifies efforts to pressure Tehran into returning to nuclear negotiations and to clamp down on its proxies across the region.

The US carried out strikes on June 22 on three Iranian nuclear sites including its most deeply buried enrichment plant, Fordow. The Pentagon said on Wednesday the strikes had degraded Iran's nuclear programme by up to two years, despite a far more cautious initial assessment that had leaked to the public.

The US and Iran were expected to hold talks about its nuclear programme next week in Oslo, Axios reported.

Said’s companies and vessels blend Iranian oil with Iraqi oil, which is then sold to western buyers through Iraq or the Gulf as purely Iraqi oil using forged documentation to avoid sanctions, Treasury said.

Said controls Gulf-based company VS Tankers, although he avoids formal association with it, the Treasury said. Formerly known as Al Iraqia Shipping Services & Oil Trading (Aissot), VS Tankers has smuggled oil for the benefit of the Iranian government and the Islamic Revolutionary Guard Corps, which is designated by Washington as a terrorist organisation, it said.

The sanctions block US assets of those designated and prevent Americans from doing business with them.

Hezbollah trying to rebuild its operations

The Lebanese armed group Hezbollah has been severely weakened following a year-long war with Israel that ended in November.

The US Treasury said the new sanctions underscore a commitment to disrupting the group’s sanctions evasion schemes and supporting efforts by the new Lebanese government to limit Hezbollah’s influence.

“Through their roles at AQAH, these officials sought to obfuscate Hezbollah’s interest in seemingly legitimate transactions at Lebanese financial institutions, exposing these banks to significant AML/CFT [money laundering and terrorism financing] risk while allowing Hezbollah to funnel money for its own benefit,” said Deputy Secretary Michael Faulkender.

“As Hezbollah seeks money to rebuild its operations, Treasury remains strongly committed to dismantling the group’s financial infrastructure and limiting its ability to reconstitute itself,” he added.

Hezbollah has long been described as a “state within a state” in Lebanon, maintaining its own military, security and social infrastructure that operates independently of government control. It also runs a parallel financial system, receiving funding from Iran and various independent sources, while managing its finances outside official state institutions.

Ms Bruce said that Washington remains committed to supporting Lebanon by disrupting schemes that empower Hezbollah’s destabilising influence. “We will continue to employ all available tools to ensure that this terrorist group no longer poses a threat to the Lebanese people and the region,” she said.