The U.S. State Department said on Friday it was taking action to dismantle what it described as a sophisticated network that used deception and intermediary companies to obtain advanced equipment for Iran’s defense sector in violation of American sanctions.

According to State Department spokesperson Tommy Pigott, the network allegedly defrauded dozens of U.S. technology firms and secured millions of dollars’ worth of equipment, including spectrum analyzers and security detection devices with potential military applications.

U.S. officials said the operation relied on fraudulent websites designed to resemble legitimate American companies. The network allegedly used intermediaries in Dubai to receive shipments before transferring the equipment to Iran, circumventing existing sanctions restrictions.

The State Department identified Ali Majd Sepehr as the individual leading the network. Officials did not disclose the names of the affected American companies or provide details on the quantity of technology allegedly transferred.

The sanctions announcement comes as Washington increases efforts to disrupt financial and logistical channels linked to Iran’s military establishment. On Thursday, the State Department offered a reward of up to $15 million for information leading to the disruption of financial mechanisms associated with the Islamic Revolutionary Guard Corps and its affiliated branches.

The move also coincides with high-stakes diplomatic discussions between Washington and Tehran aimed at ending the conflict that began earlier this year. The White House said on Friday that President Donald Trump would approve an agreement only if it fully satisfies U.S. requirements, underscoring uncertainty surrounding the negotiations.

The latest sanctions signal that the United States intends to maintain economic and legal pressure on Iran’s defense procurement networks even as diplomatic efforts continue.

Chinese startups are setting up operations in Singapore to reassure global clients that their intellectual property is insulated from Beijing’s oversight, while U.S. firms are drawn by easier access to international talent amid tightening visa rules at home, industry executives and analysts said.

Kerry Goh, chief executive of Kamet Capital, said relocating operations to Singapore provides “comfort” to international clients by ensuring data and intellectual property are governed locally. He cited support for a new AI video venture launched by former executives of Alibaba as an example of this shift.

The trend reflects broader fallout from intensifying Sino-U.S. competition over advanced technologies, including export controls and talent mobility restrictions. Policies under U.S. President Donald Trump, particularly changes to H-1B visa rules, have made it harder for companies to deploy global workforces in the United States.

Singapore has responded with incentives aimed at building an AI-focused economy, including fast-track visas for skilled workers and tax benefits for intellectual property registration. Officials say these measures have strengthened the country’s appeal as a technology hub.

Major global firms are expanding their presence. AI developer Anthropic is planning a Singapore office, according to people familiar with the matter, joining companies such as OpenAI, Meta’s Superintelligence Labs, and Google’s DeepMind.

At the same time, the shift has raised concerns among policymakers. Washington has tightened restrictions on advanced chip exports, including limits on sales by Nvidia to China, while Beijing has reportedly imposed constraints on talent mobility for some AI firms expanding overseas.

Analysts warn Singapore’s growing role as a “neutral” jurisdiction could draw scrutiny from both sides. Chong Ja Ian, a political scientist at the National University of Singapore, said the city-state risks being viewed as a grey zone for technology transfers, potentially prompting regulatory pushback.

Despite such risks, companies continue to be attracted by Singapore’s streamlined visa processes, with some employment passes approved within days, and its reputation as a stable, business-friendly environment.

The move, announced by Defense Ministry Director General Amir Baram, will redirect procurement spending toward domestic suppliers and allied countries, according to an Israeli defense spokeswoman.

Policy rift deepensIsrael said the decision was in response to several French actions, including recognition of a Palestinian state, exclusion of Israeli firms from defense exhibitions, and a ban on Israeli aircraft carrying munitions for operations against Iran from transiting French airspace.

“The French ban was imposed despite prior coordination,” the spokeswoman said, adding that Israel viewed the measures as harmful to bilateral defense cooperation.

France’s presidency said its position was consistent with its policy since the start of the conflict, after U.S. President Donald Trump criticized Paris for not allowing Israel-bound military flights to cross its airspace.

According to a French parliamentary report, Israel’s procurement from French defense firms totaled about $260 million between 2015 and 2024, primarily involving components rather than complete weapons systems.

France does not directly export arms to Israel but supplies parts used in broader defense production chains.

The decision signals a further deterioration in defense ties between the two countries as the regional conflict intensifies following a military campaign launched by the United States and Israel against Iran on Feb. 28.

Israel’s defense ministry said it viewed the developments “with great severity,” warning of potential long-term impacts on strategic cooperation.