The U.S. Department of the Treasury has launched Operation Economic Outcast, a whole-of-government campaign aimed at disrupting the economic networks and revenue channels supporting the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC). The initiative expands Iran sanctions across digital assets, technology, gold, aviation and shipping, while targeting nearly 60 entities, individuals and vessels across multiple jurisdictions.
Treasury said the campaign follows direction from President Trump and is intended to systematically target financial channels used for oil smuggling, sanctions evasion and other activities linked to Iran.
Operation Economic Outcast Expands Iran Sanctions
Under Operation Economic Outcast, the Office of Foreign Assets Control (OFAC) issued five sectoral sanctions determinations covering digital assets, technology, gold, aviation and shipping.
Treasury said the measures increase its ability to sanction foreign persons operating in or providing services to these sectors of the Iranian economy. The department said Iran has increasingly used cryptocurrency for sanctions evasion, while advanced technology has been sought for weapons programs. Gold has also been used to stabilize the rial, while aviation and shipping networks have been linked to the movement of fighters, weapons, sensitive technologies, oil and other assets.
The new determinations build on earlier measures covering Iran’s financial, petroleum and petrochemical sectors.
OFAC Sanctions Nearly 60 Iran-Linked Targets
OFAC also sanctioned nearly 60 entities, individuals and vessels across networks associated with nuclear and missile technology procurement, cyber operations and oil revenue generation.
The action includes a procurement network spanning the Middle East and East Asia that Treasury said helped Iranian entities obtain sensitive dual-use technology through front companies, financial channels and logistics intermediaries.
Treasury also targeted a malicious cyber group directed by Iran’s Ministry of Intelligence and Security (MOIS). The department said members of the group compromised and exfiltrated data from U.S. companies in critical infrastructure sectors, including energy, healthcare, defense, information technology and financial services.
The designations also include Iranian cyber actors accused of network compromises and digital asset theft. Treasury said one individual illicitly gained control of a Bitcoin wallet containing more than $30,000 in 2023.
Secondary Sanctions Risk Expands
The campaign also increases secondary sanctions exposure for entities that continue conducting certain business with the Iranian regime. Treasury said countries are being given timelines to address identified Iran-related activity, while entities facilitating money laundering or sanctions evasion could face restrictions involving the U.S. financial system.
OFAC also suspended several general licenses that previously authorized certain remittance payments to Iran and Iranian access to parts of the U.S. cultural and academic system.
Iran’s Shadow Fleet and Oil Networks Targeted
A major component of the measures focuses on Iran’s shadow fleet and oil revenue channels. Treasury sanctioned brokers, companies, and vessels involved in transporting Iranian crude oil and petroleum products across multiple jurisdictions.
The department identified shipping networks involving the UAE, Hong Kong, China, Singapore, Switzerland, Europe, and other regions. Several UAE-based entities and individuals were designated over alleged roles in facilitating Iranian oil shipments and cryptocurrency payments.
OFAC also targeted five vessels identified as blocked property, including SIFRA, G SILVER, QUANTUM HOPE, VOYAGE ELITE and TELA. Treasury said these vessels had transported Iranian LPG, petroleum products or crude oil to markets in Asia.
The measures mean that property and interests in property belonging to designated or blocked persons that are in the United States or under the control of U.S. persons are blocked and must be reported to OFAC.
Treasury said violations of U.S. sanctions can result in civil or criminal penalties, while certain transactions involving designated persons may also expose foreign financial institutions to secondary sanctions.