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News

US sanctions on Iran over protest crackdown and shadow banks

Rakesh Paul
Last updated: 16/01/2026
Rakesh Paul
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7 Min Read
A wide news-style image of a government building at dusk with a blurred protest crowd in the background and financial document imagery in the foreground.

The United States has imposed new sanctions on Iranian security officials, financial networks and a prison, saying the measures respond to what US officials described as a violent crackdown on protests across Iran. The US Treasury Department said the actions also target “shadow banking” networks it accused of laundering proceeds tied to Iranian petroleum and petrochemical sales.

Contents
Who was sanctioned and whySanctions include Fardis PrisonUS claims about the crackdownWhat US officials say sparked the protestsShadow banking networks and alleged oil-linked launderingBessent’s warning and US pressure campaign

US Treasury Secretary Scott Bessent said the sanctions were carried out at the direction of President Donald Trump and are aimed at Iranian leaders involved in what the US described as a brutal crackdown against protesters. Bessent also said the United States “stands firmly” behind the Iranian people in their calls for freedom and justice.

Who was sanctioned and why

The US Treasury Department said it sanctioned five Iranian officials for their alleged role in coordinating the state response to protests that erupted in December. Those designated include Ali Larijani, who the US identified as secretary of Iran’s Supreme Council for National Security and described as a key figure behind the use of force against demonstrators.

The Treasury said the sanctions also target senior commanders from the Islamic Revolutionary Guard Corps and Iran’s law enforcement agencies. A separate US State Department statement from Principal Deputy Spokesperson Tommy Pigott said the Iranian government responded to protesters with violence and what he called cruel repression.

Sanctions include Fardis Prison

US officials said the sanctions include Fardis Prison, which they described as a place where women have faced “cruel, inhuman, and degrading treatment.” The US government said the new measures were part of a broader response to what it characterized as a violent crackdown on peaceful protests.

US claims about the crackdown

US officials said Iran’s security forces fired live ammunition at demonstrators, leading to deaths and injuries in multiple provinces. The Treasury also cited an incident in Ilam Province in which elements of the IRGC allegedly attacked wounded protesters inside a hospital, using tear gas and metal pellets and assaulting patients, family members and medical workers.

The Treasury said several provincial commanders were sanctioned for overseeing what it described as violent operations. It named Mohammad Reza Hashemifar, described as commander of Iran’s Law Enforcement Forces in Lorestan Province, and IRGC commander Nematollah Bagheri, accusing them of responsibility for shootings and intimidation of civilians.

In Fars Province, the Treasury said it sanctioned Law Enforcement Forces commander Azizollah Maleki and IRGC commander Yadollah Buali over killings of protesters in Shiraz. US officials said hospitals in Shiraz were overwhelmed with gunshot victims, and that other patients were turned away.

The Treasury also said families of those killed were pressured to give what it described as false testimony on state television or risk not receiving the bodies of their relatives. The Treasury said Larijani was among the first Iranian leaders to call for violence in response to protests that US officials described as legitimate demands by demonstrators.

What US officials say sparked the protests

The Treasury described the protests as starting over rising prices and later expanding into one of the most serious challenges to Iran’s clerical establishment since the 1979 Islamic Revolution. US officials also described the protest movement as beginning in December 2025.

The Treasury cited figures from the US-based Human Rights Activists News Agency (HRANA), saying at least 2,435 protesters and 153 government-affiliated individuals have been killed since the unrest began. Moneycontrol also reported that Iranian authorities continued a hard crackdown on demonstrations that started on December 28.

Shadow banking networks and alleged oil-linked laundering

Alongside the sanctions tied to the crackdown, the Treasury said it imposed sanctions on 18 individuals accused of helping launder proceeds from Iranian petroleum and petrochemical sales through “shadow banking” networks. US officials said these networks are tied to sanctioned Iranian financial institutions Bank Melli and Shahr Bank and rely on front companies in several countries.

Among the entities named in the Treasury description were Iran-based Nikan Pezhvak Aria Kish Company, UAE-based Empire International Trading FZE and Singapore-based Golden Mist PTE. Ltd. The Treasury also described additional sanctions targeting Shahr Bank-linked companies, including HMS Trading FZE and Tejarat Hermes Energy Qeshm, along with multiple trading and shipping firms it accused of facilitating oil and petrochemical exports.

US officials alleged that 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. The Treasury said that, under the sanctions, property and interests of designated persons under US jurisdiction are blocked, and US persons are generally prohibited from conducting transactions with them.

Bessent’s warning and US pressure campaign

In a video message described in the coverage, Bessent warned Iran’s leadership that US authorities were tracking funds he said were being moved out of the country. He said the Treasury would pursue such transfers globally and urged Iranian leaders to change course, while also calling on them to stop violence and stand with the people of Iran.

Moneycontrol reported that the new measures add pressure on Tehran under Trump’s revived “maximum pressure” campaign. The same report said the actions are part of US efforts aimed at curbing Iran’s oil exports and preventing Tehran from developing nuclear weapons.

TAGGED: Ali Larijani, Bank Melli, Fardis Prison, Iran protests, IRGC, Scott Bessent, shadow banking, Shahr Bank, US sanctions, US Treasury
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By Rakesh Paul
I'm the Co-Founder of VellaTimes and an experienced digital marketer. With substantial experience in the blogging industry, I love crafting insightful and engaging news articles on technology, sports, and automobiles.
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