The US Treasury Department has imposed sanctions on ten individuals and companies, several of them based in China and Hong Kong, for their alleged involvement in helping Iran obtain weapons and the necessary raw materials for its Shahed drones and ballistic missiles.
This action, reported by Reuters, occurred just days before US President Donald Trump's planned meeting with Chinese President Xi Jinping and amid stalled efforts to resolve the conflict with Iran.
In a statement, the Treasury Department claimed the economic measures aim to hinder Iran's military industrial base weapons production capacity.
The department also claimed that it will take action against any foreign entities supporting what it called illicit Iranian commerce, including airlines, and to implement secondary sanctions on foreign financial institutions that assist Iran, even those connected to China's independent oil refineries.
According to Brett Erickson of Obsidian Risk Advisors, these sanctions are designed to curb Iran's capacity to threaten maritime vessels in the Strait of Hormuz and regional allies.
Shipping traffic through this critical chokepoint, essential for global oil and natural gas transport, has drastically reduced since the war began, contributing to a significant increase in energy prices.
Erickson further commented that the sanctions, as currently implemented, are narrowly focused, potentially affording Iran more time to adjust its procurement methods and find alternative suppliers.
He also noted that Chinese banks crucial to Iran's economy have not yet been targeted.
Among the sanctioned entities are China-based Yushita Shanghai International Trade Co Ltd, for allegedly facilitating Iran's weapon purchases from China; Dubai-based Elite Energy FZCO, for transferring millions of dollars to a Hong Kong firm to support procurement; Hong Kong-based HK Hesin Industry Co Ltd and Belarus-based Armory Alliance LLC, for acting as intermediaries; Hong Kong-based Mustad Ltd, for aiding the procurement of weapons for Iran's Islamic Revolution Guards Corps; Iran-based Pishgam Electronic Safeh Co, for procuring drone motors; and China-based Hitex Insulation Ningbo Co Ltd, for supplying materials used in ballistic missiles.
In an unprecedented act of defiance, China last week pushed back against Washington’s sanctions on Chinese refiners buying Iranian crude, invoking a “blocking rule” for the first time, directing companies not to comply with US sanctions.
Likewise, last month, China joined Russia to veto a US-backed resolution at the UN Security Council targeting Iran.
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