U.S. Widens Sanctions in Global Crackdown on Iran’s Missile and Drone Networks

The U.S. Department of the Treasury has imposed sanctions on 32 individuals and entities operating across eight countries in a coordinated effort to disrupt Iran’s ballistic missile and unmanned aerial vehicle production capabilities.

The Office of Foreign Assets Control announced the designations targeting procurement networks based in Iran, the United Arab Emirates, Turkey, China, Hong Kong, India, Germany, and Ukraine that have been supporting Iran’s weapons programs. The action comes as Iran attempts to rebuild military capabilities damaged during this summer’s conflict between Iran and Israel, known as the “12-Day War.”

“Across the globe, Iran exploits financial systems to launder funds, procure components for its nuclear and conventional weapons programs, and support its terrorist proxies,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley. “At the direction of President Trump, we are putting maximum pressure on Iran to end its nuclear threat.”

The Treasury’s enforcement action specifically targets networks that have posed direct threats to commercial shipping in the Red Sea and to U.S. and allied personnel in the Middle East. Among those sanctioned are members of the “MVM partnership,” a three-person venture that since 2023 has coordinated the procurement of hundreds of metric tons of ballistic missile propellant ingredients from China on behalf of Iran’s Parchin Chemical Industries.

The sanctions also hit procurement networks supporting Iranian companies that produce UAV engines used in Shahed-131 and Shahed-136 unmanned aerial vehicles. These same drone models have been used in attacks on commercial vessels transiting the Red Sea.

OFAC’s action represents the second round of nonproliferation sanctions supporting the September 27, 2025 reimposition of United Nations sanctions on Iran, following the country’s continued non-compliance with international commitments.

As a result of the designations, all property and interests in property of the sanctioned persons that are in the United States or under U.S. control are blocked. Financial institutions and other entities conducting certain transactions with designated persons may face secondary sanctions.

The timing of the sanctions comes amid recent developments in the Red Sea crisis, with the Houthis announcing a suspension of their maritime attacks and formally ended their blockade of Israeli ports, marking a potential turning point for one of the world’s most critical shipping lanes. However, experts caution that the pause, which has still not been confirmed by Western officials, remains conditional and reversible, with the group maintaining full capability to resume operations if fighting in Gaza resumes.

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