WASHINGTON: The US Treasury together with the United Arab Emirates announced action to disrupt an alleged “large scale” currency exchange network run by Iran’s powerful Islamic Revolutionary Guard Corps.
In the first such action since President Donald Trump withdrew from the Iran nuclear accord on Tuesday, the Treasury announced sanctions against six Iranian individuals and three companies tied to the IRGC who were part of the network, which it said handled “hundreds of millions” of dollars in exchange transactions.
The Treasury also singled out Iran’s central bank as “complicit” in the IRGC operation, alleging the bank gave the operation access to funds held in offshore bank accounts.
“The Iranian regime and its Central Bank have abused access to entities in the UAE to acquire US dollars to fund the IRGC-QF’s malign activities, including to fund and arm its regional proxy groups, by concealing the purpose for which the US dollars were acquired,” said Treasury Secretary Steven T. Mnuchin.
“We are intent on cutting off IRGC revenue streams wherever their source and whatever their destination,” he said.
The individuals and companies included an alleged IRGC “front company” in Tehran, Jahan Aras Kish, and a Tehran money-changer, Rashed Exchange.
The US government made clear Tuesday when Trump announced the end of US participation in the JCPOA nuclear deal that going ahead, Washington was going to ramp up pressure on the IRGC and the Central Bank of Iran.
The new sanctions on the currency network ban US individuals and entities from doing business with them, aiming to lock them out of global dollar networks.
US sanctions hit Iran Revolutionary Guard currency network
US sanctions hit Iran Revolutionary Guard currency network
- The new sanctions on the currency network ban US individuals and entities from doing business with them, aiming to lock them out of global dollar networks.
‘No to the war’: Spain digs in as rift with US deepens
- Pedro Sanchez: ‘We will not be complicit in something that is harmful to the world and contrary to our values and interests’
- US forces use the Rota naval base and Moron air base in southern Spain under an agreement signed in 1953 under the dictatorship of General Francisco Franco
MADRID: Spain’s prime minister defiantly posted “No to the war” on Wednesday, deepening a rift with the United States after Madrid refused the use of its bases to attack Iran and Washington threatened trade reprisals.
Spain’s Socialist Prime Minister Pedro Sanchez had already angered US President Donald Trump with a series of other policies.
Sanchez has refused to join NATO allies in a pledge to boost defense spending to five percent of GDP as demanded by Trump, and has fiercely criticized Israel’s war in Gaza.
Trump lashed out at Sanchez’s government on Tuesday, calling Spain a “terrible” ally and threatening to sever all trade with Spain.
Sanchez defended his position on Wednesday, saying his government’s position “can be summed up in four words: no to the war.”
“We will not be complicit in something that is harmful to the world and contrary to our values and interests, simply out of fear of retaliation,” he added in a televised address.
Spain is part of the European Union, which allows goods to move freely between its 27 countries. This would complicate any bid to impose trade restrictions on a single member state.
“Trump’s words don’t always become policy. We will have to see if he follows through, and how,” said Angel Saz Carranza, director of the Esade Center for Global Economy and Geopolitics, a Spanish think tank.
European Council chief Antonio Costa wrote on X that he had called Sanchez to “express the EU’s full solidarity with Spain.”
“The EU will always ensure that the interests of its member states are fully protected,” Costa said.
French President Emmanuel Macron also called to “express France’s European solidarity in response to the recent threats of economic coercion targeting Spain,” his office said.
‘Oppose this disaster’
US forces use the Rota naval base and Moron air base in southern Spain under an agreement signed in 1953 under the dictatorship of General Francisco Franco.
During the 2003 invasion of Iraq, Spain, then led by conservative prime minister Jose Maria Aznar, staunchly backed the United States by sending troops.
Spain’s participation in the Iraq war sparked huge street demonstrations and many Spaniards blame it for the March 11, 2004 Madrid train bombings that killed nearly 200 people.
A branch of Al-Qaeda claimed responsibility for the attacks and called for the withdrawal of Spanish forces from Iraq.
Sanchez on Wednesday compared the Iran attacks to the Iraq war, which he said increased terrorism, increased energy prices and led to a less secure world.
“We oppose this disaster,” he said in reference to the Iran war.
In contrast, neighboring Portugal authorized the United States to “conditionally” use an air base on the Azores archipelago in the Atlantic Ocean for the Iran strikes, Prime Minister Luis Montenegro told parliament on Wednesday.
The authorization was granted as long as “these operations are defensive or retaliatory, are necessary and proportionate, and exclusively target military objectives,” Montenegro said.
The conservative leader said those conditions were “aligned with international law,” but he declined to openly support Sanchez or take a stance on the US-Israeli strikes on Iran.
Rally his base
The Spanish prime minister has emerged as a prominent figure for Europe’s disillusioned progressives, who see him as one of the few remaining openly leftist voices in a continent increasingly dominated by right-wing politics.
His opposition to the use of the bases is seen by some analysts as an attempt to rally his supporters around an issue that unites the Spanish left.
Sanchez, in power since 2018, heads a minority coalition government that struggles to pass legislation.
The popularity of his Socialist party has taken a hit from a string of sexual harassment and graft scandals ahead of the next general election due in 2027.
Many on Spain’s right consider Sanchez’s opposition to Trump as motivated more by domestic politics than by a moral compass.
The head of the main opposition conservative Popular Party which tops opinion polls, Alberto Nunez Feijoo, accused Sanchez on X of using foreign policy for “partisan” purposes.
Left-leaning daily newspaper El Pais urged Sanchez in an editorial on Wednesday to “resist the temptation” to “exploit widespread hostility toward Trump in Spanish society to boost his popularity.”
