The United States on 16 October 2026 imposed a sweeping new round of sanctions targeting an Iraqi bank, two Iranian offshore banks, a Dubai-based Iranian oil intermediary, a Hong Kong front company, and a Cuban state-owned bank, as the Trump administration escalated its financial pressure campaign against Tehran under what it calls Operation Economic Outcast. The designations mark one of the broadest single-day enforcement actions under the operation since its launch in August.

Key Designations and Networks Targeted

Sayyed Ruhollah Razavi, described by the US Treasury as 'one of the top oil trustees on whom the Iranian regime relies to sell oil and repatriate the revenue,' was among those blacklisted. Based in Dubai, Razavi reportedly oversaw the shipment of 'millions of barrels of oil overseas each month' on behalf of the National Iranian Oil Company (NIOC) before earlier US export restrictions took hold.

Hong Kong-based Elitesphere Trading Co., Limited was designated for allegedly moving funds on behalf of an affiliate of Iran's Shahr Bank through a network of brokers and front companies. Sadegh Bavi, described as an Iranian-Dominican national listed in Dubai and identified as an IRGC-Qods Force facilitator, was also sanctioned.

On the banking side, the Treasury blacklisted Iraq-based International Development Bank for Investment and Finance, which it said provides 'US dollar access for Iran,' along with two Iranian offshore institutions — Jazireh International Bank Company and Chabahar International Bank Overseas Company.

Cuba Pulled Into Iran Sanctions Net

Secretary of State Marco Rubio separately sanctioned Cuba's state-owned Banco Internacional de Comercio S.A. (BICSA), alleging it had provided financial services to Iran's sanctioned Karafarin Bank since at least 2022. Rubio framed the move in stark terms, stating: 'For too long, Communist Cuba has been allowed to operate as an outpost for malign actors and terror groups — including the Islamic Republic of Iran, the world's number one state sponsor of terrorism — to target the United States.'

He added: 'Let me be clear: the Trump Administration will not tolerate a rogue state hosting hostile foreign military, intelligence and terror operations less than a hundred miles from the American homeland.'

How the Money Moves: Gold, Cash, and Charter Flights

The Treasury detailed the alleged mechanics of the sanctions-evasion network, stating that funds were moved 'through Hong Kong to the UAE and Türkiye where they are converted to gold and cash and then smuggled on Mahan Air flights to Iran and its terrorist proxies around the world.' The networks are said to have moved 'hundreds of millions of dollars through shell companies and foreign-exchange specialists across the Middle East and Asia.'

Religious Charity Networks Under Scrutiny

In a parallel action, the Treasury's Financial Crimes Enforcement Network (FinCEN) issued an alert directing banks to report potential Iranian abuse of religious charity structures, including the diversion of religious tithes known as khums. Treasury Secretary Scott Bessent said: 'Treasury will not allow the Iranian regime to continue its long history of abusing religious institutions to line the pockets of its elites and fund terrorism.'

Operation Economic Outcast: Background and Scope

Operation Economic Outcast was formally announced by Bessent on 24 August. Earlier enforcement rounds targeted shadow fleet and procurement networks spanning the UAE, Hong Kong, China, and other jurisdictions. The Treasury warned that 'engaging in certain transactions involving the persons designated today may risk the imposition of secondary sanctions on participating foreign financial institutions' — a signal directed as much at third-country banks as at designated entities. Notably, the widening geographic footprint, from the Gulf to East Asia to the Caribbean, suggests Washington is systematically closing off Iran's remaining dollar-access corridors.