US Sanctions Iran Over Protest Crackdown, Targets "Shadow Banking" Networks

The measures include sanctions on Fardis Prison, which US officials said on Thursday is an institution where women have faced "cruel, inhuman, and degrading treatment".

The US Treasury Department also sanctioned several Iranian security officials, including Ali Larijani, the Secretary of Iran's Supreme Council for National Security.

"As the brave people of Iran continue to fight for their basic rights, the Iranian regime has responded with violence and cruel repression against its own people," Principal Deputy State Department Spokesperson Tommy Pigott said in a statement.

US Treasury Secretary Scott Bessent said the actions target those responsible for suppressing protests that began in December 2025.

"The US stands firmly behind the Iranian people in their call for freedom and justice," Bessent said.

"At the direction of President Trump, the Treasury Department is sanctioning key Iranian leaders involved in the brutal crackdown against the Iranian people."

According to the US Treasury, Larijani was among the first Iranian leaders to call for violence in response to what US officials described as legitimate demands by protesters.

US officials said Iran's security forces have fired live ammunition at demonstrators, resulting in deaths and injuries across multiple provinces.

They also cited an incident in Ilam Province where elements of the Islamic Revolutionary Guard Corps (IRGC) attacked wounded protesters inside a hospital.

The Iranian miltary forces fired tear gas and metal pellets and assaulted patients, family members, and medical workers, according to the statement.

Several provincial commanders were sanctioned for overseeing violent operations.

Mohammad Reza Hashemifar, Commander of Iran's Law Enforcement Forces in Lorestan Province, and IRGC Commander Nematollah Bagheri were accused of responsibility for shootings and intimidation of civilians.

In Fars Province, Law Enforcement Forces Commander Azizollah Maleki and IRGC Commander Yadollah Buali were sanctioned over killings of protesters in Shiraz.

US officials said hospitals in the city were overwhelmed with gunshot victims, forcing other patients to be turned away.

Families of those killed were pressured to give false testimony on state television, the Treasury said, or risk not receiving the bodies of their relatives.

In parallel, the US moved against what it called Iran's "shadow banking" system.

The US Treasury sanctioned 18 individuals and entities accused of laundering proceeds from Iranian petroleum and petrochemical sales.

OFAC said the networks are tied to sanctioned financial institutions Bank Melli and Shahr Bank and rely on front companies across several countries.

Among the entities sanctioned were Iran-based Nikan Pezhvak Aria Kish Company, UAE-based Empire International Trading FZE, and Singapore-based Golden Mist PTE. Ltd.

Several senior officials linked to these firms were also designated.

Additional sanctions targeted Shahr Bank-linked companies, including HMS Trading FZE and Tejarat Hermes Energy Qeshm, along with multiple trading and shipping firms accused of facilitating oil and petrochemical exports.

US officials alleged the funds generated through these networks were used to finance repression inside Iran and support militant groups abroad, rather than helping ordinary Iranians facing economic hardship.

All property and interests of the designated persons under US jurisdiction are blocked, and US persons are generally prohibited from conducting transactions with them.

- IANS