Iran bets on shadow networks to evade US sanctions

What Happened

The administration of US President Donald Trump has implemented a new series of sanctions, termed economic D-Day, targeting Iran's oil, banking, and technology sectors, with a specific focus on cryptocurrency usage to bypass traditional financial systems. Reports indicate that the Iranian state is increasingly relying on shadow networks, including those managed by businessman Babak Zanjani, to facilitate oil sales and trade transactions through the Strait of Hormuz. Zanjani, who was released from prison in 2025 after a previous conviction for withholding $2.6 billion in oil revenues, is reportedly leveraging his business empire to assist the Iranian government in navigating these intensified international restrictions.

Key Actors

Why It Matters

The reliance on shadow networks and digital currencies highlights the ongoing struggle between US maximum pressure policies and Iran's efforts to maintain economic viability under isolation. The effectiveness of these sanctions depends on the ability of US authorities to map and disrupt opaque, decentralized financial channels that operate outside the global banking system, a task complicated by the deep integration of these networks within Iran's political and military power structures.

Watch For

Monitor for further US Treasury designations targeting specific companies or individuals linked to Zanjani's network, as well as any shifts in Iranian oil export volumes passing through the Strait of Hormuz. Additionally, observe whether the Iranian government continues to utilize these private intermediaries despite the history of internal power struggles and corruption allegations surrounding such figures.