The US Treasury Department has announced fresh sanctions on nine individuals and entities, accusing them of supporting weapons procurement for Iran’s Islamic Revolutionary Guard Corps and Iran’s Ministry of Defense and Armed Forces Logistics. The move targets individuals and companies based in China and Hong Kong, which, according to US officials, have been facilitating arms purchases and financial transactions for Iran through extensive overseas supply and finance networks.
Scope of the sanctions
The Office of Foreign Assets Control (OFAC), operating under the Treasury Department, stated that this latest measure aims squarely at Iran’s military supply chain and the associated financial channels. The sanctions were imposed under presidential executive orders that target those supporting the proliferation of weapons of mass destruction and entities operating in Iran’s financial sector.
Treasury Secretary Scott Bessent emphasized that the department is working to disrupt external supply networks that bolster Iran’s armed forces. This decision follows the US freeze of nearly $1 billion in crypto assets linked to Iran. With these moves, Washington seeks to limit Tehran’s access to foreign income, banking systems, and digital asset infrastructure.
Treasury Secretary Scott Bessent underscored that the department is focused on dismantling Iran’s overseas supply networks, including the digital asset channels supporting its military apparatus.
Who’s on the sanctions list?
The list includes Chinese national Liu Boyu and names associated with Hong Kong registered Mustad Limited, which was previously sanctioned by OFAC in May 2026. According to the Treasury, Mustad acts as an intermediary by facilitating financial transactions for arms acquisitions linked to the Islamic Revolutionary Guard Corps.
Others sanctioned include Wang Hongyi, Xu Lichun, and Mustad Shanghai International Trade Co Ltd, with the Treasury confirming that Mustad Shanghai is fully owned by Mustad. Domus Trading HK Limited, based in Hong Kong, was also added for allegedly operating within Iran’s covert banking network and facilitating weapons-related payments.
The sanctions also target Manuchehr Golchin, an Iranian national residing in China, who the Treasury identified as a facilitator of defense procurements for Iran’s Ministry of Defense out of China. Meng Shaopei, who serves as managing director and sole owner of Hong Kong-based Solos International Limited, is among the individuals sanctioned, with Solos accused of supporting defense deals as well.
Crypto assets and secondary sanctions advisory
Simultaneously, the US State Department imposed its own set of sanctions on two organizations and two individuals based in Iran and Belarus, citing their roles in facilitating Iran’s conventional weapons programs. The move follows similar measures in May, targeting arms procurement networks allegedly supporting Iran’s Revolutionary Guard and the Innovation and Technology Cooperation Center.
OFAC confirmed that all property and interests in property of sanctioned individuals and entities that are in the US or under the control of US persons are now blocked. The restriction also extends to companies at least 50 percent owned, directly or indirectly, by sanctioned parties. US persons are prohibited from transacting with these assets without explicit OFAC authorization.
The Treasury warned that foreign financial institutions knowingly conducting significant transactions for the sanctioned individuals could also face secondary sanctions. It also highlighted that payments for transit through the Strait of Hormuz come with risks, noting that the method of transaction—whether fiat currency, digital assets, bartering, services, or donations—does not affect its sanctionable status.
