The United States on Friday imposed sanctions on 10 individuals and companies, including entities based in China and Hong Kong, accusing them of helping Iran procure weapons components and raw materials used in its Shahed drones and ballistic missile programme.
Sanctions Ahead of Trump-Xi Meeting
The sanctions, announced by the US Treasury Department, come days before US President Donald Trump is scheduled to travel to China for talks with Chinese President Xi Jinping amid stalled diplomatic efforts to end the conflict involving Iran.
In a statement, the Treasury said it remained prepared to take economic measures against Iran's military-industrial network to stop Tehran from rebuilding its production capabilities. The department also warned it was ready to act against foreign companies involved in illicit Iranian trade, including airlines, and could impose secondary sanctions on financial institutions assisting Iran, particularly those linked to China's independent 'teapot' oil refineries.
Impact on Strait of Hormuz
Brett Erickson, managing principal at Obsidian Risk Advisors, said the sanctions were aimed at limiting Iran's ability to threaten commercial shipping and regional allies through the Strait of Hormuz. Iran shut the Strait of Hormuz, the narrow passage between Iran and Oman through which nearly one-fifth of the world's crude oil and liquefied natural gas passes, after the US and Israel carried out strikes on multiple Iranian targets on February 28. Shipping activity through the strategic waterway has nearly halted since the conflict began, triggering a sharp rise in global energy prices.
Iran's Drone Capacity
According to the British government-funded Centre for Information Resilience, Iran has the capacity to manufacture around 10,000 drones a month. Erickson, however, said the sanctions remained narrowly targeted, giving Iran time to redirect procurement operations through alternative suppliers. He added that the Treasury had not yet targeted Chinese banks that continue to support Iran's economy.
Entities Sanctioned
- Yushita Shanghai International Trade Co Ltd (China-based) – accused of helping Iran purchase weapons from China.
- Elite Energy FZCO (Dubai-based) – allegedly transferred millions of dollars to a Hong Kong-based company involved in procurement operations.
- HK Hesin Industry Co Ltd (Hong Kong-based) – allegedly acted as an intermediary in procurement deals.
- Armory Alliance LLC (Belarus-based) – allegedly acted as an intermediary in procurement deals.
- Mustad Ltd (Hong Kong-based) – facilitated weapons procurement for Iran's Islamic Revolutionary Guard Corps.
- Pishgam Electronic Safeh Co (Iran-based) – accused of procuring drone motors.
- Hitex Insulation Ningbo Co Ltd (China-based) – sanctioned for allegedly supplying materials used in ballistic missiles.
The sanctions list also included other individuals and entities. The US Treasury emphasized its commitment to disrupting Iran's weapons programs and warned of further actions against those supporting Tehran's military ambitions.
