The sanctions target what U.S. officials described as a procurement network supporting Iran’s defense sector amid continuing regional tensions and stalled diplomatic efforts tied to the conflict involving Tehran and its regional allies.

The Treasury Department said the measures were aimed at entities and individuals allegedly involved in facilitating the acquisition of sensitive materials and technology for Iran’s military-industrial apparatus, including components linked to the production of Shahed unmanned aerial vehicles.

The action comes days before U.S. President Donald Trump is expected to travel to China for talks with Chinese President Xi Jinping, at a time when negotiations tied to the broader Iran conflict have shown little progress.

“Under Trump’s decisive leadership, we will continue to act to Keep America Safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.

The Treasury did not immediately disclose the full list of sanctioned parties in the initial announcement, but said several of the targeted entities operated from China and Hong Kong and were involved in supplying materials tied to Iran’s drone manufacturing capabilities.

Iran’s Shahed drones have become a central component of the country’s military strategy and have drawn international scrutiny over their deployment across regional conflicts. Western governments have repeatedly accused Tehran of expanding its drone production and export networks despite existing sanctions regimes.

The latest measures freeze any U.S.-based assets belonging to the designated parties and generally prohibit Americans from conducting business with them. Secondary sanctions risks may also apply to foreign financial institutions engaging with sanctioned entities.

Washington has steadily expanded sanctions targeting Iran’s defense procurement channels since the outbreak of heightened regional hostilities, focusing increasingly on overseas intermediaries and companies accused of supplying dual-use technology and industrial materials.

The U.S. Treasury Department said Iraqi Deputy Oil Minister Ali Maarij Al-Bahadly used his government position to help divert oil revenues to the Iranian government and affiliated militias.In a statement, the Treasury alleged Al-Bahadly facilitated the sale of oil “for the benefit of the Iranian regime and its proxy militias in Iraq.”

Iraq’s oil ministry and Al-Bahadly did not immediately respond to requests for comment.The sanctions were announced as Washington and Iran moved closer to a temporary arrangement aimed at halting ongoing hostilities, although key disputes between the two sides remain unresolved.

The Treasury Department also imposed sanctions on three senior leaders linked to the Iran-backed militias Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq, groups Washington has previously accused of threatening U.S. interests and regional stability.

“Treasury will not stand idly by as Iran’s military exploits Iraqi oil to fund terrorism against the United States and our partners,” U.S. Treasury Secretary Scott Bessent said in a statement.Under U.S. sanctions rules, any assets held in the United States by the designated individuals are frozen, while U.S. citizens and entities are generally prohibited from conducting transactions with them.

The move follows comments in March by Iraqi Oil Minister Hayan Abdel-Ghani, who said Iranian oil tankers intercepted by U.S. forces in the Gulf had been operating with forged Iraqi documentation. Tehran denied those allegations.

The sanctions underscore Washington’s continuing efforts to curb Iran’s regional financial networks while maintaining parallel diplomatic contacts over de-escalation efforts in the wider Middle East conflict.

The Treasury Department said Iraqi Deputy Oil Minister Ali Maarij Al-Bahadly abused his official position to enable the sale of oil for the benefit of the Iranian government and affiliated militias in Iraq.In a statement, Treasury accused Al-Bahadly of helping divert Iraqi oil revenues to support “the Iranian regime and its proxy militias in Iraq.” Iraq’s oil ministry and the deputy minister did not immediately respond to requests for comment.

The sanctions were announced as Washington and Iran moved closer to a temporary arrangement aimed at halting hostilities, with Tehran reviewing a proposal that could pause the conflict while leaving major disputes unresolved.The U.S. Treasury also imposed sanctions on three senior figures associated with the Iran-backed militias Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq.

“Treasury will not stand idly by as Iran’s military exploits Iraqi oil to fund terrorism against the United States and our partners,” U.S. Treasury Secretary Scott Bessent said in a statement.The sanctions freeze any assets held in the United States by those designated and generally prohibit U.S. individuals and companies from conducting business with them.

The measures follow remarks made in March by Iraqi Oil Minister Hayan Abdel-Ghani, who said Iranian oil tankers intercepted by U.S. forces in the Gulf had been using forged Iraqi documents. Tehran denied the allegation.

The latest sanctions highlight Washington’s continued efforts to disrupt Iran’s regional financial and logistical networks while simultaneously pursuing diplomatic contacts aimed at containing wider conflict across the Middle East.

U.S. Treasury Secretary Scott Bessent said he spoke by video call with Chinese Vice Premier He Lifeng and U.S. Trade Representative Jamieson Greer to discuss preparations for Trump’s planned May 14–15 visit to China, which would mark a major diplomatic engagement between the world’s two largest economies.

“Our meeting was both candid and comprehensive, and I stressed that China’s recent provocative extraterritorial regulations have a chilling effect on global supply chains,” Bessent said in a post on X.

His remarks marked one of the Trump administration’s clearest public criticisms of Beijing’s newly introduced supply chain regulations, which U.S. businesses and analysts say could make it harder for foreign firms to diversify sourcing of critical minerals and industrial goods away from China.

The rules, introduced in recent weeks, create a legal framework that could penalize foreign companies shifting supply chains out of China, particularly in sectors involving rare earths and strategic manufacturing inputs.Analysts have described the move as a significant escalation that could complicate Washington’s broader effort to reduce dependence on Chinese-controlled supply chains.

Bessent did not outline a direct U.S. response to the measures but said he looked forward to “a productive summit” between Trump and Xi.Chinese state broadcaster CCTV said He Lifeng had “candid, in-depth and constructive exchanges” with Bessent and Greer and that Beijing had raised “serious concerns” over recent U.S. trade-restrictive measures targeting China.

According to CCTV, both sides agreed to enhance consensus, manage differences and strengthen cooperation, signaling that preparations for the summit remain on track despite persistent tensions.The officials last met in person in Paris in March, where they discussed possible Chinese purchases of U.S. agricultural goods and the creation of new joint mechanisms to manage trade and investment disputes.

Chinese officials also used those talks to object to new tariff investigations launched by Trump’s administration after the U.S. Supreme Court struck down his earlier global tariff framework in February.Trump had delayed his Beijing trip because of the U.S.-Israeli war involving Iran, but officials on both sides now appear focused on preserving stability ahead of the summit.

In a separate diplomatic exchange on Thursday, Chinese Foreign Minister Wang Yi told U.S. Secretary of State Marco Rubio that Taiwan remained the “biggest point of risk” in bilateral ties, underscoring broader geopolitical tensions beyond trade.

The two countries reached a fragile trade truce last October during talks in Busan, South Korea, after months of retaliatory tariffs triggered by Trump’s “Liberation Day” duties and China’s restrictions on exports of rare earths and other critical minerals.

As the summit approaches, U.S. lawmakers and industry groups are also pressing the administration not to grant China greater access to the American automotive sector.Ten U.S. steel industry groups wrote to Bessent, Greer, Rubio and Commerce Secretary Howard Lutnick on Thursday, warning against allowing Chinese investment into the U.S. auto market.

The groups said such access could weaken domestic manufacturing competitiveness and create national security risks linked to data collection and strategic industrial dependence.At the same time, both governments have continued to build leverage ahead of the leaders’ meeting, with China advancing its new supply chain rules and Washington tightening restrictions on tool shipments to one of China’s major semiconductor manufacturers.

Chinese state media said both sides had expressed willingness to promote the “healthy, stable and sustainable development” of bilateral economic and trade relations.

The waiver replaces a previous 30-day authorization that expired on April 11 and permits transactions involving Russian crude and petroleum products already loaded at sea, while continuing to exclude dealings tied to Iran, Cuba and North Korea.

The move follows pressure from energy-importing countries, particularly in Asia, grappling with supply disruptions and elevated costs.A Treasury spokesperson said the decision was linked to broader efforts to stabilize markets as diplomatic engagement with Iran intensifies. “As negotiations with Iran accelerate, Treasury wants to ensure oil is available to those who need it,” the spokesperson said.

The extension marks a reversal from comments made earlier in the week by Treasury Secretary Scott Bessent, who had indicated the administration would not renew waivers covering Russian and Iranian oil. The Iranian waiver, issued on March 20, had facilitated the flow of roughly 140 million barrels into global markets, according to Bessent’s prior statements.

Global oil prices fell about 9% on Friday to around $90 per barrel after Iran temporarily reopened the Strait of Hormuz, a critical transit route for global crude supplies. However, the conflict now entering its eighth week has already caused extensive disruption, with more than 80 oil and gas facilities in the Middle East reported damaged, according to the International Energy Agency.

Tehran has warned it could again close the strait if U.S. naval actions targeting Iranian ports continue, raising the risk of renewed supply shocks. The war has been described by the agency as the most severe disruption to global energy supply in history.

The administration’s decision also reflects domestic political pressures, as elevated fuel prices pose risks to Republican candidates ahead of the November midterm elections. U.S. officials said the issue was raised during meetings on the sidelines of G20, World Bank and International Monetary Fund gatherings in Washington, where partner countries urged continued flexibility on supply.

Trump also discussed oil markets during a recent call with Narendra Modi, whose country remains a major importer of Russian crude.The waiver has drawn criticism from lawmakers across party lines, who argue it risks undermining sanctions aimed at curbing Russia’s revenue from its war in Ukraine while also easing pressure on Iran during its confrontation with the United States.

European officials have voiced similar concerns, with Ursula von der Leyen stating that sanctions relief would be premature.Russian presidential envoy Kirill Dmitriev said the policy signaled ongoing economic and energy engagement between Washington and Moscow, adding that earlier waivers could release volumes equivalent to nearly a day of global oil output.

Analysts said the measure underscores the limited policy options available to policymakers confronting simultaneous geopolitical crises and market instability. Brett Erickson of Obsidian Risk Advisers said the damage to global energy systems may be enduring, warning that “the tools available to stabilize them are nearly exhausted.”

The meeting, attended by senior administration officials including Scott Bessent and White House Chief of Staff Susie Wiles, comes as policymakers and industry leaders assess the implications of Anthropic’s latest AI model, Mythos, which has raised concerns about its potential to accelerate sophisticated cyberattacks.

In a statement, the White House described the talks as “productive and constructive,” saying both sides discussed collaboration frameworks and shared protocols to address risks associated with scaling advanced AI systems. It added that further engagements with other leading AI firms were planned.

Anthropic said the meeting focused on joint priorities including cybersecurity, maintaining U.S. competitiveness in artificial intelligence, and strengthening safety standards. The dialogue marks the first high-level engagement between the two sides since tensions escalated over national security concerns tied to the company’s technology.

The Mythos model, unveiled earlier this month, is being rolled out to a limited number of organizations under a controlled program known as Project Glasswing. The initiative allows selected users to test the system’s capabilities in identifying cybersecurity vulnerabilities.

Anthropic has described Mythos as its most advanced model for coding and autonomous task execution.Experts warn that such capabilities could be dual-use, enabling both defensive cybersecurity applications and the identification of exploitable weaknesses in digital infrastructure.

Financial institutions are viewed as particularly exposed due to their reliance on legacy systems integrated with modern technologies, creating complex vulnerability surfaces.Officials in the United States, Canada and Britain have held discussions with banking sector leaders to evaluate potential risks posed by advanced AI tools like Mythos, reflecting growing concern across critical sectors.

The renewed engagement follows a breakdown in relations earlier this year between the company and the Pentagon. The Defense Department imposed a supply-chain risk designation on Anthropic after the firm declined to modify safeguards preventing the use of its AI in autonomous weapons or domestic surveillance applications.

In response, the administration ordered federal agencies to halt use of Anthropic’s tools, and Donald Trump publicly criticized the company. Anthropic subsequently filed a lawsuit in March challenging the designation.

Speaking to reporters on Friday, Trump said he was unaware of the meeting, underscoring the fragmented nature of the administration’s engagement with the AI sector as it seeks to balance innovation with national security concerns.

“We’re not going to get dragged into this war. It is not our war,” Starmer told parliament, adding that participation would not serve Britain’s national interest.Trump, speaking in a phone interview with Sky News, said he could alter an agreement limiting the impact of U.S. tariffs on Britain, signaling potential economic consequences for London’s stance.

He also criticized the UK’s level of support during U.S. military operations.Tensions have risen between the allies after Britain declined to allow its bases to be used for initial U.S. strikes on Iran last month.

London later approved a request for the use of two bases for what officials described as a “specific and limited defensive purpose.”Starmer emphasized the resilience of the bilateral relationship, referencing the planned state visit of King Charles III to the United States and stating that ties between the two countries extend beyond individual leaders.

Trump said disagreements would not affect the royal visit but reiterated criticism of Britain’s position. “When we needed them, they were not there,” he said.The dispute reflects a broader hardening in tone from Starmer’s government toward Washington.

Finance Minister Rachel Reeves criticized the U.S. decision to launch military action against Iran as lacking a clear exit strategy, while Health Minister Wes Streeting described Trump’s rhetoric as “incendiary” and “provocative.”

Reeves was scheduled to meet U.S. Treasury Secretary Scott Bessent in Washington on Wednesday on the sidelines of International Monetary Fund meetings to discuss the economic implications of the conflict.

Treasury Secretary Scott Bessent said the administration had cautioned governments and banks that continued transactions involving Iranian oil could trigger punitive measures. “If you are buying Iranian oil, that if Iranian money is sitting in your banks, we are now willing to apply secondary sanctions,” he told reporters at the White House.

The warning comes as the U.S. enforces a naval blockade on Iran that began earlier this week, with officials saying they expect the move to curb purchases by key buyers, particularly China, which has accounted for the majority of Iran’s seaborne oil exports.

Bessent said the Treasury had contacted two Chinese banks, warning that they could face sanctions if evidence shows Iranian funds moving through their systems. China’s embassy in Washington did not immediately respond to requests for comment.

Separately, the U.S. Treasury announced sanctions targeting Iran’s oil transportation network, including more than two dozen individuals, companies and vessels, as part of a broader effort to disrupt the country’s energy exports.

The measures follow the administration’s decision not to renew a 30-day sanctions waiver issued on March 20 that had allowed Iranian oil shipments already at sea to reach global markets.

The waiver, which Bessent said facilitated the delivery of about 140 million barrels, is set to expire on April 19.Washington has also allowed a similar waiver covering Russian oil shipments to lapse, reinforcing its broader sanctions enforcement strategy.

U.S. officials said letters had been sent to jurisdictions including China, Hong Kong, the United Arab Emirates and Oman, identifying financial institutions allegedly linked to Iranian transactions and warning of potential enforcement actions.

The steps are part of what the administration has described as a “maximum pressure” campaign aimed at curbing Iran’s oil revenues and limiting its ability to finance regional activities.

Treasury Secretary urges faster rate cuts to strengthen consumer confidence and stabilize housing growth.

U.S. Treasury Secretary Scott Bessent has struck an optimistic yet realistic tone on the nation’s economy, highlighting that while certain sectors such as housing are under pressure from high interest rates, the broader U.S. economy remains resilient and well-positioned for recovery.

Speaking on Sunday, Bessent emphasized that the Federal Reserve has the opportunity to accelerate rate cuts to help balance growth and affordability, especially in the housing market.

Bessent noted that the United States continues to show economic strength in several key areas, from employment to consumer spending, but that the housing sector faces temporary challenges

. “We are in good shape, but there are sectors of the economy that are in recession,” he said in an interview, adding that high mortgage rates have made it difficult for first-time homebuyers and low-income families to access affordable housing.

“The Fed has caused a lot of distributional problems with their policies,” he said.

The Treasury Secretary pointed out that despite these pressures, the overall financial system remains healthy. He described the current period as a “transition phase” — one where steady policy actions could steer the economy back toward balanced growth.

Pending home sales in September were flat, according to the National Association of Realtors, suggesting stabilization after months of adjustment in the housing market.

Experts note that rising borrowing costs have cooled real estate demand, but with inflation showing signs of moderation and unemployment rates stable, conditions are ripe for a rebound if interest rates ease.

Bessent reinforced this view, saying that lower rates could unlock new opportunities in housing construction and lending, spurring economic activity across related sectors such as materials, furnishings, and local services.

The Treasury chief’s comments followed a week of debate within the Federal Reserve over how quickly to move on rate adjustments. Fed Chair Jerome Powell recently hinted that additional rate cuts at the December meeting were “not a foregone conclusion,” a cautious stance that has drawn criticism from both administration officials and market analysts.

Bessent, along with Federal Reserve Governor Stephen Miran, argued that keeping rates high for too long risks slowing the economy unnecessarily.

Miran, who previously chaired the White House Council of Economic Advisers, warned in a recent interview that prolonged tight monetary policy could trigger avoidable slowdowns.

“If you keep policy this tight for a long period of time, you run the risk that monetary policy itself is inducing a recession,” he said, calling instead for a 50-basis-point cut to stimulate momentum and maintain investor confidence.

Bessent echoed that sentiment, highlighting the government’s efforts to reduce fiscal pressure. He pointed to the Trump administration’s successful moves to lower the deficit-to-GDP ratio from 6.4% to 5.9%, an achievement that contributes to easing inflationary pressures. “If we are contracting spending, then inflation should be dropping.

If inflation is dropping, then the Fed should be cutting rates,” he said, suggesting that fiscal responsibility and monetary flexibility can work hand in hand.

Market analysts believe that faster rate cuts could rejuvenate the housing sector, making mortgages more affordable and boosting home sales, particularly among younger and first-time buyers.

The ripple effects could support construction jobs, increase consumer confidence, and stimulate growth in local economies.

Despite recent challenges, the overall tone from Bessent and other policymakers remains positive. The U.S. economy continues to show adaptability amid changing global conditions, supported by strong private investment, technological innovation, and a robust labor market.

With potential policy adjustments on the horizon, analysts say the nation is well-positioned for renewed growth and a stronger housing market heading into 2026.