Ethan Riley
Iran has been subject to international sanctions for several years, with the United Nations Security Council adopting six resolutions since 2006 requiring Iran to stop enriching uranium and cooperate with the IAEA. These sanctions have targeted various sectors of Iran's economy, including oil, gas, petrochemicals, and banking. In 2020, the US imposed sanctions on 18 Iranian banks, and the EU and US lifted some sanctions against Iran in 2016. However, many restrictions still apply, and the US has continued to impose sanctions on Iranian defence officials, nuclear scientists, and anyone involved in conventional arms deals with Iran. In 2025, the US imposed sanctions on Iranian businessman Reza Zarrab and his network of companies for violating US sanctions. So, are Iran's banking sanctions still in place?
| Characteristics | Values |
|---|---|
| Date of latest sanctions | 24 August 2025 |
| Target of latest sanctions | Iranian businessman Reza Zarrab and his network of companies |
| Reason for latest sanctions | Facilitating the sale of Iranian liquefied petroleum gas (LPG) in violation of U.S. sanctions |
| Number of Iranian banks sanctioned in 2020 | 18 |
| US sanctions on Iran first imposed | November 1979 |
| US sanctions on Iran lifted | January 1981 |
| US sanctions on Iran reimposed | 1987 |
| EU and US sanctions on Iran lifted | 16 January 2016 |
| US primary sanctions on Iran | Prohibiting "US persons" from engaging in Iranian-related transactions |
| US secondary sanctions on Iran | Targeting the activities of non-US persons |
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What You'll Learn
US sanctions on 18 Iranian banks in 2020
On 8 October 2020, the US imposed sanctions on 18 Iranian banks, targeting the financial sector of Iran's economy. The US Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned 16 Iranian banks for operating in Iran's financial sector and one bank for being owned or controlled by a sanctioned Iranian bank. Additionally, an Iranian military-affiliated bank was designated under the Treasury's counter-proliferation authority.
The sanctions were implemented pursuant to Executive Order (EO) 13902, which authorizes the Treasury to sanction any Iranian financial institution and to identify and impose sanctions on key sectors of Iran's economy. The aim was to deny the Iranian government financial resources that could be used to fund and support its nuclear program, missile development, terrorism, and other malign activities.
The banks sanctioned were Amin Investment Bank, Bank Keshavarzi Iran, Bank Maskan, Bank Refah Kargaran, Bank-e Shahr, Eghtesad Novin Bank, Gharzolhasaneh Resalat Bank, Hekmat Iranian Bank, Iran Zamin Bank, Karafarin Bank, Khavarmianeh Bank, Mehr Iran Credit Union Bank, Pasargad Bank, Saman Bank, Sarmayeh Bank, Tosee Taavon Bank, Tourism Bank, and Islamic Regional Cooperation Bank.
The US had previously exempted humanitarian items from sanctions. However, the prohibition against doing business with Iranian banks and the reduction in medical export licenses have made it difficult for Iran to access necessary medicine and medical supplies, including during the COVID-19 pandemic. The sanctions have also impacted Iranian university students studying abroad, preventing them from easily paying their tuition fees.
The US has imposed sanctions on Iran in response to its nuclear program, support for designated terrorist organizations, and involvement in regional conflicts. These sanctions are part of a broader effort to pressure Iran and target its ability to access the global financial system.
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Sanctions on Iran's oil exports
The US has imposed sanctions on Iran's oil exports to cut off revenue streams that enable the country's financing of terrorism and development of its nuclear program. These sanctions are part of a "maximum pressure" campaign aimed at countering Iran's "malign activities" and destabilizing actions in the Middle East and beyond.
The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has designated a "teapot" oil refinery and its chief executive officer for purchasing and refining hundreds of millions of dollars' worth of Iranian crude oil. This includes oil from vessels linked to the Foreign Terrorist Organization, Ansarallah, also known as the Houthis, and the Iranian Ministry of Defense of Armed Forces Logistics (MODAFL). The US Secretary of the Treasury, Scott Bessent, stated that these purchases provide the primary economic lifeline for the Iranian regime, which is considered the world's leading state sponsor of terror.
In addition to the refinery and its CEO, OFAC has also imposed sanctions on 19 entities and vessels responsible for shipping millions of barrels of Iranian oil. These entities and vessels constitute Iran's "shadow fleet," which employs deceptive shipping practices to conceal their activities. Among the sanctioned vessels are the NATALINA 7, CATALINA 7, AURORA RILEY, VIOLA, MONTROSE, VOLANS, BRAVA LAKE, and TITAN.
The US Department of State has also taken action by imposing sanctions on four entities engaged in the Iranian petroleum trade and identifying two vessels as blocked property. One of these vessels, the U.S.-designated tanker SNOW, formerly known as CHERAM, is linked to the U.S.-designated NATIONAL IRANIAN TANKER COMPANY. The State Department has also designated three vessel management companies involved in the transport of Iranian petroleum, emphasizing the role of China-based refiners in the purchase, acquisition, and processing of Iranian crude oil.
These sanctions and designations are authorized under various Executive Orders, including E.O. 13902, which targets Iran's petroleum and petrochemical sectors, and E.O. 13846, which addresses significant transactions related to the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran.
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Sanctions on Iran's nuclear program
The United States has led international efforts to use sanctions to influence Iran's policies since 1979. These sanctions have targeted Iran's uranium enrichment program, which Western governments believe is intended to develop the capability to produce nuclear weapons.
In 2006, the United Nations Security Council passed Resolution 1696, demanding that Iran suspend all enrichment-related and reprocessing activities and threatening sanctions if the country failed to comply. This was followed by Resolution 1737 in December 2006, which imposed sanctions on Iran due to the proliferation risks presented by its nuclear program. These sanctions included banning the supply of nuclear-related materials and technology, as well as freezing the assets of key individuals and companies related to the program.
In 2015, the P5+1 and Iran reached a provisional agreement, known as the Joint Comprehensive Plan of Action (JCPOA), to lift most sanctions in exchange for limits on Iran's nuclear programs for at least ten years. However, in 2018, the United States withdrew from the deal, citing its ineffectiveness in curbing Tehran's nuclear program. This withdrawal led to the reimposition of sanctions on Iran, including an arms embargo, missile and drone restrictions, bans on most nuclear activity, and travel, banking, and asset freezes on designated Iranian entities and individuals.
The United States has continued to impose additional sanctions on Iran, targeting its oil trade, financial sector, and individuals and entities associated with its nuclear program. In 2020, the Treasury Department sanctioned eighteen major Iranian banks to prevent illicit access to U.S. dollars and deny funding for Iran's nuclear program. More recently, in 2025, the U.S. imposed sanctions on entities purchasing and transporting Iranian oil, as well as on Iran's oil minister and shadow fleet.
Other countries, such as China, France, Germany, and the United Kingdom, have also been involved in negotiations and sanctions related to Iran's nuclear program. While China has committed to resolving the issue through diplomatic means, the E3 nations (France, Germany, and the UK) have threatened to invoke a sanctions clause under the JCPOA if no progress is made on a new deal before the old one expires in October 2025.
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Sanctions on Iran's shadow banking network
On June 6, 2025, the United States Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned over 35 individuals and entities with ties to a network involved in money laundering on behalf of the Iranian regime. This network, referred to as Iran's "shadow banking" network, has been used to launder billions of dollars through Iranian exchange houses and foreign front companies to fund Tehran's campaigns and support its military and terrorist activities.
The Zarringhalam network, operated by Iranian brothers Mansour, Nasser, and Fazlolah Zarringhalam, is a key component of Iran's shadow banking system. This network of exchange houses and front companies, primarily located in the United Arab Emirates (UAE) and Hong Kong, allows sanctioned Iranian persons and organizations to receive payments for sanctioned goods, such as oil and petrochemicals. To justify these transactions, fictitious invoices or transaction details may be generated.
The Iranian regime relies heavily on its shadow banking system to fund its nuclear and ballistic missile programs and support its terrorist proxies and partners across the Middle East. This parallel banking system enables the regime to access the proceeds from oil sales, move money, and fund its destabilizing activities.
The sanctions on Iran's shadow banking network are part of a campaign of maximum pressure on Iran, aiming to disrupt the critical nodes in this network and prevent the Iranian government from accessing financial resources that may be used to fund its nuclear program, missile development, terrorism, and regional influence. The United States has stated its commitment to denying Iran access to financial networks and the global banking system as long as it continues its destabilizing activities.
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EU sanctions relief in 2016
On 16 January 2016, the EU lifted all nuclear-related economic and financial sanctions against Iran. This was a result of the Joint Comprehensive Plan of Action (JCPOA) between Iran and the P5+1, which was implemented in early 2016. The JCPOA outlined a series of steps to ensure Iran's nuclear program would be used for peaceful purposes only.
The lifting of sanctions had a significant impact on Iran's economy in several ways. Firstly, it led to the release of Iran's frozen funds abroad, estimated at $29 billion, representing about one-third of Iran's foreign-held reserves. Secondly, sanctions against exports of Iranian oil were removed, allowing Iran to trade with the rest of the world and use the global banking system. Additionally, foreign firms were now permitted to invest in Iran's oil and gas, automobiles, hotels, and other sectors.
While the EU lifted its nuclear-related sanctions in 2016, it has since imposed and renewed other sanctions on Iran. In 2011, the EU introduced sanctions to address serious human rights violations in Iran, which have been renewed annually. Since October 2022, the EU has significantly increased sanctions due to the deteriorating human rights situation, including the death of Mahsa Amini and the violent repression of peaceful protests. As of April 2026, these sanctions are still in place.
It is important to distinguish between EU sanctions and those imposed by the United States. While the EU lifted its nuclear-related sanctions in 2016, the US has had a more turbulent approach. After the JCPOA was adopted in October 2015, the US lifted most sanctions. However, in 2018, President Trump withdrew from the deal and reinstated US sanctions, which were expanded in 2019 and 2020 to target Iran's financial sector.
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Frequently asked questions
Yes, there are currently banking sanctions against Iran. On October 8, 2020, the US imposed sanctions on 18 Iranian banks, 16 of which were for operating in Iran's financial sector, and one bank for being owned or controlled by a sanctioned Iranian bank.
Banking sanctions against Iran were imposed to restrict the Iranian government's access to financial resources that could be used to fund and support its nuclear program, missile development, terrorism, and regional influence. The sanctions also aim to prevent money laundering and terrorist financing, which undermine the credibility of Iran's economy.
Yes, in addition to banking sanctions, there are also sanctions against Iran's oil exports, defence officials, nuclear scientists, and anyone involved in conventional arms deals with the country. There are also restrictions on investments in oil, gas, and petrochemicals, exports of refined petroleum products, and business dealings with specific entities like the Islamic Revolutionary Guard Corps (IRGC).
