By: Fern Sidman

In a far-reaching enforcement action aimed at crippling terror financing and weakening Iran’s illicit oil trade, the U.S. Treasury Department on Wednesday imposed a new round of sanctions targeting Hezbollah operatives and an intricate network of companies accused of trafficking billions of dollars in Iranian oil.

According to a statement from Treasury Secretary Scott Bessent, seven senior Hezbollah officials were sanctioned for their central roles at the financial institution Al-Qard Al-Hassan (AQAH), a Hezbollah-controlled organization that has long operated under the guise of a charitable trust. The designations also extended to one individual and 21 companies and vessels forming what Treasury officials described as a clandestine “shadow fleet” designed to bypass U.S. sanctions and deliver Iranian crude oil to international markets—profits from which have reportedly supported the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), a U.S.-designated terrorist entity.

As reported by the Jewish News Syndicate (JNS), the latest sanctions represent one of the most comprehensive efforts in recent years by the U.S. government to dismantle the financial arteries sustaining Iran’s proxy networks, particularly Hezbollah—a group that has been repeatedly linked to violent campaigns across the Middle East and beyond.

At the heart of Wednesday’s action lies Al-Qard Al-Hassan, a Hezbollah-run quasi-bank that has functioned as a financial lifeline for the group despite being formally designated by the U.S. Treasury as a terror-linked entity in 2007. The seven individuals sanctioned are all high-ranking AQAH officials, accused of laundering funds through seemingly legitimate banking channels in Lebanon to finance Hezbollah’s regional operations.

Deputy Treasury Secretary Michael Faulkender, speaking to reporters in Washington, emphasized the scope and severity of the group’s activities: “Through their roles at Al-Qard Al-Hassan, these officials sought to obfuscate Hezbollah’s interest in seemingly legitimate transactions at Lebanese financial institutions, exposing these banks to significant anti-money laundering and counter-terror financing risk.”

One of the most prominent figures sanctioned was Ali Mohamad Karnib, head of AQAH’s procurement department. According to Treasury documents cited by JNS, Karnib personally oversaw the purchase of over 1,000 ounces of gold for AQAH as of July 2024—acquisitions believed to have been used to quietly fortify Hezbollah’s reserves and preserve liquidity despite mounting financial constraints.

“Today’s action underscores Treasury’s commitment to disrupting Hezbollah’s sanctions evasion schemes,” Faulkender added, “and supporting efforts by the new Lebanese government to limit the terrorist group’s influence, particularly as entities like AQAH continue to undermine the already fragile Lebanese economy.”

As JNS has reported, AQAH has long exploited Lebanon’s porous regulatory environment and Hezbollah’s political clout to function as a shadow central bank for the group—extending credit, facilitating large transactions, and even operating ATMs in Hezbollah-dominated districts.

Parallel to its Hezbollah crackdown, the Treasury Department unveiled a separate tranche of sanctions targeting a sprawling international oil smuggling operation linked to Iran’s IRGC-QF. The network allegedly utilized shell companies, bribed officials, and falsified documentation to disguise Iranian oil as Iraqi crude—facilitating sales on the international market despite long-standing U.S. sanctions.

At the center of this operation is Salim Ahmed Said, an Iraqi businessman whose companies have reportedly funneled millions of dollars in illicit revenue back to Iran. According to Treasury findings, Said “has bribed many members of key Iraqi government bodies, including parliament,” and “paid millions of dollars in kickbacks to these officials in exchange for forged vouchers allowing him to sell Iranian oil as if it originated from Iraq.”

Said’s corporate empire spans multiple jurisdictions, including the United Arab Emirates, Iraq, the United Kingdom, and at least one shipping company flagged in the Marshall Islands. Treasury’s action sanctioned several of his entities and a number of vessels tied to them.

In addition, the so-called “shadow fleet” includes companies registered in Singapore, the British Virgin Islands, and Liberia, with tankers flying under flags from Cameroon, Comoros, Panama, Seychelles, Marshall Islands, and Palau.

As noted in the JNS report, this transnational web reflects the extraordinary lengths to which Iran and its affiliates go to evade international monitoring and continue generating revenue to sustain militant proxies throughout the Middle East.

Treasury Secretary Bessent framed the actions in the context of President Trump’s broader campaign to reassert maximum pressure on Iran and its regional allies. “As President Trump has made clear, Iran’s behavior has left it decimated,” Bessent said. “While it has had every opportunity to choose peace, its leaders have chosen extremism.”

The latest designations, he continued, “intensify economic pressure to disrupt the regime’s access to the financial resources that fuel its destabilizing activities.”

The JNS report emphasized that Wednesday’s move is consistent with a broader policy shift toward aggressively targeting the financial underpinnings of Tehran’s regional influence, particularly following Iran’s support for Hamas during the October 2023 attacks on Israel and its continued backing of Hezbollah amid rising tensions along Israel’s northern border.

While the new sanctions are unilateral in nature, they are expected to pressure international financial institutions and maritime operators to avoid any dealings with the listed entities. As the report at JNS observed, past Treasury actions have often had ripple effects far beyond U.S. borders, as companies and governments seek to avoid secondary sanctions or reputational damage.

Officials from allied governments, including the United Kingdom and the European Union, have signaled tentative support for closer scrutiny of Iranian oil shipments and Lebanese financial institutions suspected of enabling Hezbollah operations.

With Hezbollah still reeling from Israeli strikes during Operation Rising Lion and Lebanon’s economy teetering on the brink, the timing of the sanctions is especially significant. “As Hezbollah seeks money to rebuild its operations,” Faulkender stated, “Treasury remains strongly committed to dismantling the group’s financial infrastructure and limiting its ability to reconstitute itself.”

As highlighted in the JNS report, Wednesday’s dual-pronged sanctions effort highlights a foundational principle of U.S. policy under President Trump: that counterterrorism is not only waged on battlefields, but also in boardrooms and bank accounts.

With Hezbollah under financial strain, Iran’s oil lifeline compromised, and regional stability hanging in the balance, the message from Washington is clear—there will be no sanctuary, financial or territorial, for those who fund and foment terror.

And with Treasury tightening the noose, the cost of doing business with Hezbollah or Iran’s illicit oil trade has never been higher.