New sanctions expose procurement channels supplying Iran’s defense industry, missiles, and UAV programs
The U.S. Department of the Treasury has imposed new sanctions on 10 individuals and entities across multiple jurisdictions for their alleged role in procuring weapons and military components for Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).
The action, announced on September 29, 2026, targets procurement networks linked to Iran’s military-industrial infrastructure, including programs involving ballistic missiles and unmanned aerial vehicles (UAVs). The Treasury Department said the measures are part of Operation Economic Outcast, a broader campaign aimed at disrupting the financial and commercial networks sustaining the Iran regime.
MODAFL is responsible for weapons research, production, and acquisition for Iran’s armed forces and oversees organizations involved in the development of ballistic missiles and UAVs.
The latest sanctions were imposed by the Treasury Department’s Office of Foreign Assets Control (OFAC) under Executive Order 13382, which targets proliferators of weapons of mass destruction and their means of delivery.
Procurement Network Spans China, Hong Kong, Pakistan, Saudi Arabia, and Türkiye
The Treasury action highlights the increasingly international character of the Iran regime’s efforts to obtain military technology and components.
Among those designated is Seyyed Asghar Alizadeh Tabatabai, identified by Treasury as a MODAFL representative in Beijing. According to the department, he coordinates the procurement of finished weapons systems and dual-use components in China on behalf of Iran’s defense ministry.
Treasury also targeted Kavoshcom Asia R&D Group, an Iran-based company accused of procuring electronic components, including connectors, for Iran Aircraft Manufacturing Industrial Company (HESA), a MODAFL subordinate involved in UAVs and military aircraft.
Kavoshcom also allegedly supplied electronics to Shahid Bakeri Industrial Group (SBIG), which is linked to MODAFL’s Aerospace Industries Organization and Iran’s solid-fueled ballistic missile program.
The procurement chain extended beyond Iran. Treasury identified EC Mojo Technology Co Limited, based in Hong Kong, as having provided electronic components supporting Kavoshcom’s activities. It also designated individuals in China and Iran who allegedly facilitated these transactions or attempted to evade sanctions and export controls.
Pakistan-Based Defense Network Also Targeted
The sanctions also focus on a network connected to Waseem Pasha Tajammal, chairman of Pakistan-based Cavalier Group.
Treasury said Tajammal and Cavalier Group acted as third-party intermediaries for MODAFL, using professional and commercial networks to procure and distribute weapons on behalf of Iran.
OFAC designated Tajammal as well as companies associated with him in Pakistan, Saudi Arabia, and Türkiye. The Saudi designation was coordinated with Saudi government partners, according to Treasury.
The geographic spread of the designations illustrates the mechanisms the Iran regime uses to access foreign technology, components, companies, and intermediaries despite sanctions.
Treasury Expands Pressure Under “Economic D-Day”
The latest measures form part of Operation Economic Outcast, announced by Treasury Secretary Scott Bessent on August 24 and described by the department as an effort to sever the remaining economic lifelines sustaining the Iran regime.
Treasury says it has mapped networks and financial channels used by Iran to smuggle oil, evade sanctions, and fund terrorism, while working with the United States’ international partners to target sources of the regime’s illicit revenue.
The department has also warned companies and financial institutions that facilitating money laundering or sanctions evasion for Iran can result in exclusion from the U.S. financial system and exposure to secondary sanctions.
The latest action therefore extends the campaign beyond the regime’s direct military institutions to the commercial intermediaries, technology suppliers, and international facilitators that help keep its weapons programs supplied.
Sanctions Strike at the Regime’s Ability to Rebuild Its Weapons Programs
Treasury said the new action will further weaken the Iran regime’s ability to reconstitute its weapons programs and raise the costs for foreign actors participating in its military procurement efforts.
For the regime, the challenge is not limited to producing missiles and drones inside Iran. Maintaining these programs requires access to specialized electronics, dual-use technology, industrial equipment, financing, logistics, and international intermediaries.
The procurement networks identified by Treasury demonstrate how the regime attempts to overcome these constraints by operating through companies and individuals in several countries.
The September 29 sanctions consequently represent another attempt to close the channels through which Tehran acquires the technology and components required for its military buildup.
At the same time, Treasury’s warning that foreign financial institutions and companies can face sanctions exposure increases the potential costs for businesses willing to facilitate these networks.
The expanding scope of Operation Economic Outcast thus places the Iran regime’s military procurement apparatus under pressure not only at its domestic production centers but also across the international networks on which its weapons programs depend.