The United States has imposed sanctions on an extensive Iranian procurement network accused of impersonating U.S. companies to illegally acquire sensitive military technology for Tehran’s Ministry of Defense and Armed Forces Logistics (MODAFL) .
The action, announced by the Treasury Department’s Office of Foreign Assets Control (OFAC), is the latest salvo in the “Economic Fury” campaign, even as President Donald Trump continues to deliberate on a potential ceasefire and nuclear deal with the Islamic Republic .
A ‘Brazen’ Scheme Targeting U.S. Firms
According to the Treasury, the sanctioned network was orchestrated by Iran-based Ali Majd Sepehr, who used his company Sorena Hushmand Samaneh Company to defraud dozens of American small businesses. By impersonating legitimate buyers, the network illicitly procured restricted goods—including network security hardware, encryption software, and spectrum analyzers—on behalf of Iranian military entities .
“The Iranian military’s brazen efforts to target and deceive American businesses demonstrate just how far the regime is willing to go to support its malign activities,” said Treasury Secretary Scott Bessent. “Treasury will continue to use all available authorities to cut off the Iranian regime’s access to the global financial system” .
Designated entities and individuals include SAAFTA (an Iran-based electronics firm controlled by MODAFL), front companies in the UAE (Green Light Computer and Al Kawther Neon), and several Iranian nationals involved in re-exporting the goods from Dubai to Iran. A reward of up to $15 million has been offered for information disrupting the financial mechanisms of Iran’s Islamic Revolutionary Guard Corps (IRGC) .
The ‘Economic Fury’ Campaign Intensifies
The sanctions add to an already aggressive list of actions taken by the Treasury in May. Earlier this month, OFAC designated a separate network of 10 individuals and companies—including several based in China and Hong Kong—for supplying raw materials such as carbon fiber and electronic components specifically used in Iran’s Shahed-series drones and ballistic missile programs .
Those actions targeted entities like Yushita Shanghai International Trade Co., which acted as an intermediary for Iran’s Center for Progress and Development (CDPI), and Hitex Insulation Ningbo Company, which supplied aerospace-grade materials to Iran’s IRGC Aerospace Force .
Talks Stall as Trump Weighs Demands
Despite the financial pressure, diplomatic channels remain active. Reports indicate that U.S. and Iranian negotiators have reached a tentative agreement on a 60-day ceasefire extension and a framework for nuclear talks. However, President Trump has deferred his “final determination” pending a review of his administration’s “red lines” .
“Iran can never possess a nuclear weapon,” a White House official stated after a two-hour Situation Room meeting on Friday .
Trump has laid out strict conditions for any deal: the elimination of Iran’s enriched nuclear materials, the immediate and unrestricted reopening of the Strait of Hormuz without tolls, and the removal of all naval mines . While Vice President JD Vance confirmed the two sides are “very close,” Iranian officials have pushed back, claiming they have not formally approved any Memorandum of Understanding (MoU) and denying commitments regarding their nuclear program .
The Treasury has warned that any country or entity attempting to restrict the Strait of Hormuz or facilitate illicit Iranian commerce—including China’s independent “teapot” oil refineries—risks exposure to secondary sanctions .
