World

Operation Economic Outcast: US sanctions Iran’s military, cyber and oil networks

The measures target seven Iranian officials, two Iran-based organisations and networks accused of facilitating Tehran’s weapons procurement and illicit oil shipments

Treasury Secretary Scott Bessent (L) announced the plans on Monday, 24th August 2026
Treasury Secretary Scott Bessent (L) announced the plans on Monday, 24th August 2026 @24_70xu/X

The United States has announced a fresh round of sanctions against Iranian officials, companies, cyber groups and vessels accused of supporting Tehran’s military activities, weapons programmes, cyberattacks and oil trade.

The measures, unveiled on 24 August, form part of US President Donald Trump’s “Operation Economic Outcast”, also described by Washington as an “economic D-Day” intended to further isolate Iran and restrict revenue flowing to its government and the Islamic Revolutionary Guard Corps-Qods Force.

“Today, the United States took sweeping action against multiple entities, individuals, and vessels enabling the Iranian regime’s destabilising activities,” US State Department spokesperson Tommy Pigott said.

The sanctions cover networks allegedly involved in weapons procurement, intelligence gathering, cyber operations against American infrastructure and the transportation of Iranian oil and petrochemical products.

Among the entities targeted are DadeNegar Startup Studio and the Islamic Revolutionary Guard Corps Cyber-Electronic Command. Washington accused DadeNegar of using commercially available Chinese satellite imagery to help Iran locate US military personnel and bases in the Gulf during Operation Epic Fury, the joint US-Israeli strikes on Iran on 28 February.

The US alleged that the IRGC’s cyber-electronic unit also obtained information on American forces and facilities that supported Iranian targeting operations. Both organisations were linked by Washington to Iran’s military procurement activities.

Senior Iranian officials targeted

Seven Iranian officials have also been sanctioned over their alleged roles in military operations, weapons development and procurement.

They include former Supreme National Security Council official Mohammad Bagher Zolghadr, IRGC commander-in-chief Ahmad Vahidi and Ali Abdollahi, commander of the Khatam al-Anbiya Central Headquarters.

IRGC Aerospace Force commander Sayyid Hossein Mousavi Eftekhari and Iran’s conventional military commander Amir Hatami were targeted over their alleged involvement in ballistic missile and drone programmes.

Deputy defence minister Seyyed Mahdi Farahi was sanctioned over weapons procurement, while Defence Ministry spokesperson Reza Talaei-Nik was also included in the measures.

Cyber group accused of attacking US infrastructure

Washington has additionally sanctioned an Iranian cyber group accused of carrying out attacks against critical infrastructure in the United States.

The State Department said the action was coordinated with the Federal Bureau of Investigation, which recently charged eight Iranian nationals over alleged cyberattacks on energy companies, defence contractors, hospitals and government offices.

The US Rewards for Justice programme has offered up to $10 million for information about five individuals accused of conducting cyber operations on Iran’s behalf.

Oil companies and vessels face restrictions

The sanctions also extend to Iranian and foreign businesses accused of facilitating the movement of Iranian crude oil and petrochemical products.

According to Washington, the network used “shadow fleet” vessels, intermediaries and concealed shipping arrangements to transport Iranian products through the United Arab Emirates, China, Singapore and Europe.

The US said proceeds from these transactions helped finance the IRGC and other Iran-linked organisations.

“The United States will continue to disrupt, expose, and dismantle Iran’s military and proliferation activities, procurement schemes, malicious cyber operations, and illicit oil trade that sustains the regime’s malign behaviour,” the State Department said.

Washington also urged other countries to take action against the individuals and entities named in the sanctions.

Iran dismisses US pressure

Iranian Parliament Speaker Mohammad Bagher Ghalibaf dismissed the latest measures, arguing that Washington lacked the economic influence needed to restrict Tehran’s international relationships.

He claimed that Iran’s trading partners had indicated they would not heed the US warnings.

Iran has separately threatened to halt oil exports from the Persian Gulf if Washington continues its economic campaign. Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, warned that continued pressure could result in no oil being exported through the Strait of Hormuz or elsewhere in the Gulf.

He also said Tehran could regard support for the US campaign as an act of war.

The Strait of Hormuz remains one of the world’s most important routes for crude oil and liquefied natural gas shipments. Saudi Arabia and the UAE have expanded the use of alternative pipelines, while Iraq is working to reduce its dependence on the waterway.

However, alternatives remain limited, particularly for LNG shipments. Qatar, one of the world’s leading LNG exporters, does not have a major route capable of replacing the Strait of Hormuz.

With agency inputs

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