People gather at the funeral ceremony of Ali Reza Tangsiri, commander of the IRGC Navy of Iran. [Xinhua/Yonhap News]

The United States has added 35 entities, including companies, to its sanctions list in connection with Iran's "shadow finance" operations, which are identified as a funding source for its military.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced on the 28th (local time) that it has designated individuals and companies that facilitated millions of dollars in fund transfers related to the Iranian regime's sanctions evasion and support for terrorism.

Reuters reported, "The U.S. has increased pressure on Iran by imposing sanctions on entities and individuals involved in shadow finance."

According to OFAC, the 35 individuals and companies aided the Iranian military, including the Islamic Revolutionary Guard Corps (IRGC), in accessing the international financial system to engage in illicit oil sales, purchase sensitive components for missiles and various weapon systems, and fund Iranian proxy forces.

In a statement, Treasury Secretary Scott Bessent emphasized, "Iran's shadow finance system is a critical financial lifeline for its military, enabling activities that disrupt global trade and fuel violence across the Middle East."

Bessent stated, "The illicit funds flowing through these (shadow finance) networks support the Iranian regime's ongoing terrorist operations and pose a direct threat to the U.S., its regional allies, and the global economy."

According to Reuters, Iranian banks, blocked from Western financial systems, rely on private companies known as "Lavar," which manage thousands of shell companies abroad to facilitate payments for Iran's exports and imports.

The entities designated for sanctions in this round are Lavars that collaborated with "Sina Bank," controlled by Iran's supreme leader, "Sipa Bank," affiliated with the Iranian military, and "Shargh Bank," involved in oil sales.

The U.S. Treasury Department also warned that it would impose sanctions on banks that conduct transactions with Chinese small private refiners, known as "teapots," which are reportedly paying transit fees to Iran to pass through the Strait of Hormuz.

The Treasury noted that these teapot refiners play a key role in importing and refining Iranian crude oil, and pointed out that some of them have used the U.S. financial system for dollar-denominated transactions and procured U.S.-made goods.