US Hits Iran Banking System With 8th Sanctions Round as Strait of Hormuz Talks Continue
Updated
Updated · CBS New York · Aug 7
US Hits Iran Banking System With 8th Sanctions Round as Strait of Hormuz Talks Continue
3 articles · Updated · CBS New York · Aug 7
Summary
Friday's measures targeted Shahr Bank, two Dubai exchange houses and shell companies in Hong Kong, Singapore and Dubai that Treasury said laundered hundreds of millions of dollars for Iran.
Treasury said the network helped recover oil revenue for major Iranian exporters, including NIOC and Naftiran Intertrade, using intermediary accounts, front companies and currency conversions involving Russia's VTB Bank.
OFAC also sanctioned former Fly Baghdad CEO Basheer al-Shabbani for allegedly helping the IRGC-Qods Force move fighters, weapons and money, even after Fly Baghdad itself was removed from the blacklist earlier this week.
The eighth Iran-related sanctions round is part of Trump's pressure campaign to reopen the Strait of Hormuz and end a war now in its sixth month, with CBS polling showing 67% of Americans want it ended now.
Did Iraq avert a regional war, or did Iran-backed militias just pause attacks on Saudi targets to gain leverage?
Can Baghdad disarm hardline militias by September 30 when some factions answer more to Tehran than the Iraqi state?
The 2026 Strait of Hormuz Crisis: U.S.-Iran Sanctions, Shadow Banking, and the Largest Global Energy Shock in History
Overview
In early 2026, joint U.S.-Israeli military strikes led Iran to close the Strait of Hormuz, triggering a chain reaction that severely disrupted global oil and LNG supplies. As peace talks failed and the U.S. reinstated a naval blockade, Iran’s economy suffered massive losses, pushing the regime to create a shadow banking system and demand cryptocurrency payments for maritime transit. These actions, combined with retaliatory strikes and hybrid threats, caused oil prices to soar and exposed the limits of U.S. deterrence. The ongoing standoff, shaped by U.S. election dynamics and Iran’s strategy of escalation, continues to threaten global energy security and diplomatic stability.