Days after the United Nations dramatically restored sweeping sanctions on Iran’s nuclear and missile programs, the United States has unleashed a new wave of measures targeting Tehran’s global weapons procurement networks. On October 5, 2025, the U.S. Department of the Treasury announced sanctions against 38 individuals and entities accused of funneling sensitive military technology, advanced electronics, and even a U.S.-made helicopter to Iran’s military. The move comes amid a rapidly shifting diplomatic and security landscape, one that has seen the death of the 2015 nuclear deal, a return to zero-enrichment standards, and a flurry of diplomatic and military maneuvers from Washington, Tehran, and their allies.
According to the U.S. Treasury, these latest sanctions strike at the heart of Iran’s defense supply chains, which operate not only within Iran but also across China, Hong Kong, Germany, Türkiye, Portugal, and Uruguay. The targeted networks have allegedly been instrumental in acquiring dual-use components, radar systems, and other military hardware for the regime. Treasury Secretary Scott Bessent didn’t mince words: “The Iranian regime’s support of terrorist proxies and its pursuit of nuclear weapons threatens the security of the Middle East, the United States and our allies around the world,” he said, emphasizing the administration’s determination to deny Iran the tools for what he called “malign objectives.”
Among those sanctioned are some of Iran’s most significant defense entities: the Ministry of Defense and Armed Forces Logistics (MODAFL), missile manufacturer Shahid Bakeri Industrial Group (SBIG), and electronics producer Shiraz Electronics Industries (SEI). These organizations are known for building solid-fueled ballistic missiles and radar systems—capabilities that have come under scrutiny, especially after vulnerabilities were exposed during the recent 12-Day War.
One of the more complex procurement operations centers on Beh Joule Pars Commercial Engineering Company. Since 2017, this Tehran and Isfahan-based firm has been sourcing gyroscopes, accelerometers, and other microelectromechanical systems used in missile guidance. Its founders, Mehdi Farshchi and Mehdi Nili Ahmadabadi, have reportedly managed these acquisitions through a network of front offices and partners.
Another web of sanctions targets Khazra Communications Technology Solutions, a defense contractor accused of sourcing U.S.-origin circuit boards for Iranian air-defense radars. Khazra’s operations stretch into China, where it has worked closely with Liu Baoxia—also known as Emily Liu—a longtime procurement agent wanted by the FBI for smuggling U.S. electronics to Iran. Liu, first sanctioned in 2017, has continued her activities with the help of her mother and sister, both of whom were newly sanctioned this week.
Sanctions didn’t stop at missile and radar technology. The Treasury also cracked down on a transnational network supporting the Iran Helicopter Support and Renewal Company (PANHA), which builds helicopters for the Islamic Revolutionary Guard Corps (IRGC). Portugal-based Business United Unipessoal LDA, for instance, purchased a U.S.-origin helicopter worth nearly €4 million for Iranian buyers. Related firms in Germany, Türkiye, and Uruguay have also supplied parts and components to PANHA.
Homeland Security Investigations (HSI) Chicago Special Agent in Charge Matthew J. Scarpino lauded the effort, saying, “HSI Chicago is proud to have played a critical role in identifying key members of the Iran-based procurement network designated today, which has enabled Iran’s ballistic-missile program and posed a significant threat to U.S. and global security.” Reuben Coleman, Acting Special Agent in Charge of the FBI Detroit Field Office, echoed these sentiments: “The Federal Bureau of Investigation (FBI) alongside our federal partners will remain relentless in preventing weapons and dangerous assets from falling into the hands of foreign and domestic adversaries.”
These sanctions freeze any U.S. assets belonging to the designated individuals and entities and prohibit Americans from engaging in transactions with them. Foreign banks could face secondary sanctions if they conduct significant business with those targeted. The action was executed under National Security Presidential Memorandum-2, which directs federal agencies to counter Iran’s weapons programs and deny resources to the IRGC. Simultaneously, the State Department imposed sanctions on five additional Iranian individuals and one entity for proliferation activities. “The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior,” the department noted.
These developments come on the heels of the UN Security Council’s September 27 decision to restore multilateral sanctions against Iran—bans that had been lifted or set to expire under the 2015 Joint Comprehensive Plan of Action (JCPOA). According to the Foundation for Defense of Democracies, the so-called “snapback” mechanism has reinstated prohibitions on uranium enrichment and plutonium reprocessing, missile and drone embargoes, and restrictions on dozens of Iranian entities and individuals. Notably, these measures coincide with Iran’s efforts to arm Russia in the Ukraine conflict and supply weapons to Hamas, Hezbollah, and the Houthis.
Iran’s nuclear ambitions have been significantly set back, at least for now, thanks to US and Israeli strikes in June 2025 that destroyed key enrichment and weaponization facilities and resulted in the assassination of more than a dozen high-level Iranian personnel. Yet, as experts warn, Tehran is already working to excavate nuclear assets from under the rubble, train new scientists, and procure equipment illicitly from abroad. The reimposed zero-enrichment standard is seen by many in Washington and Europe as the only way to prevent a renewed nuclear crisis.
Still, the path forward remains fraught with tension and uncertainty. Iranian Foreign Minister Abbas Araghchi, speaking to ambassadors and foreign mission heads in Tehran on October 5, insisted that Iran’s discussions with the U.S. have only concerned nuclear issues, with no other topics on the table. He emphasized that the Cairo Agreement—a framework for cooperation with the International Atomic Energy Agency (IAEA)—can no longer serve as the basis for Iran’s cooperation due to recent attacks on Iranian facilities and changes on the ground. “Given the changes on the ground and the attack on our facilities, cooperation with the IAEA could not continue as before. Due to security threats and safety concerns, a new framework was certainly needed,” Araghchi explained, adding that the IAEA had agreed with this assessment.
Araghchi also lamented that actions taken in the UN Security Council, including the snapback of sanctions, have made future negotiations more difficult and complex. “If our proposals had been considered, reaching a negotiated and diplomatic solution would not have been out of reach,” he said, reiterating that Iran remains committed to diplomacy but that “future negotiations will certainly not be the same as before.”
The Iranian government continues to insist that it seeks neither escalation nor nuclear weapons, only the protection of its legitimate rights. “Iran will not give up its rights, but remains open to any solution that can build trust,” Araghchi stated. He also criticized Western nations for what he called “excessive demands” and for undermining their own negotiating position. “Experience has shown that there is no solution to Iran’s nuclear issue other than a negotiated diplomatic solution,” he noted, while also warning that the snapback mechanism and military threats have only complicated the path to diplomacy.
As the dust settles on a week of high-stakes diplomacy, sanctions, and saber-rattling, one thing is clear: the crisis over Iran’s nuclear program is far from resolved. With both sides digging in and the international community watching closely, the coming months could prove pivotal in shaping the future of nonproliferation—and the security of the Middle East.
