United States imposes sanctions on entities supporting Iran's military supply chain

On May 9, 2026, the United States Department of the Treasury announced sanctions against 10 individuals and companies, including several based in China and Hong Kong. The Treasury claims these entities facilitated the acquisition of weapons and raw materials for the Iranian military to manufacture Shahed drones. Secretary of the Treasury Scott Bessent stated that the U.S. remains prepared to target the Iranian military-industrial base to prevent Tehran from expanding its influence. The measures include warnings that the U.S. may impose secondary sanctions on foreign financial institutions and entities connected to independent Chinese oil refineries, known as teapot refineries. This announcement precedes a scheduled visit by U.S. President Donald Trump to China for meetings with President Xi Jinping. The administration further warned that it will target any foreign entities or airlines supporting illegal Iranian trade. The move occurs during a period of stalled efforts to resolve the ongoing conflict between the United States and Iran.