United States President Donald Trump’s administration has added a group of 10 individuals and companies to its list of global entities being sanctioned over alleged ties to the Iranian military. In a statement on Tuesday, the US Treasury accused representatives and technology firms based in China, Pakistan, Turkiye and Saudi Arabia of procuring weapons and parts for Iran’s military. Three of the sanctioned entities were located in Iran.
The sanctions were undertaken as part of Operation Economic Outcast, a Treasury Department effort to further restrict Iran’s access to global markets. Iran has been locked in a war with the US and Israel since February 28, after the two allies launched a series of deadly attacks targeting Tehran’s leadership and military. But critics have argued that the war has no clear end in sight, despite claims of victory on both sides.
US Treasury Secretary Scott Bessent announced Operation Economic Outcast in August, aimed at pressuring Tehran into agreeing to a deal to end the war. Trump claimed the operation would usher in “economic warfare and isolation on an unprecedented scale”, and he warned that any country that participates in trade with Iran would face “tremendous” consequences. As part of the campaign’s initial volley of sanctions, China-based firms and business leaders were targeted.
But China remains one of Iran’s largest trading partners, and the Trump administration has faced scrutiny over how forcefully it would confront Beijing over its participation in Iran’s economy. At the time, Bessent defended the administration’s decision to delay certain sanctions by saying, “We’re giving everyone the opportunity to remedy bad behaviour. Why would I want to blow up the global financial system?” Trump recently hosted Chinese President Xi Jinping for his first state visit to the White House in more than a decade, after which Trump touted progress in the trade talks between the two countries.
Despite the warming ties, several Chinese firms were among those sanctioned in Tuesday’s announcement. They included the Hong Kong-based company EC Mojo Technology Co Ltd, as well as one of its representatives, Li Fen. EC Mojo had “provided electronic components” to the Iranian military, while Li “attempted to evade sanctions and export controls”, Treasury claimed.
Another designated firm was Saudi-based Cavalier Dynamics for Technologies Company. As part of its announcement, the US Treasury said it would take action “in coordination with Saudi government partners”. All those included in Tuesday’s sanctions were allegedly involved in procuring “weapons and weapons components for Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), the entity responsible for weapons research, production and acquisition for Iran’s armed forces”.
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