WASHINGTON, D.C. — The U.S. Department of the Treasury last week announced a series of sanctions actions aimed at curbing fentanyl trafficking by the Sinaloa Cartel, constraining Iran’s energy revenues, and cutting off funding streams to Iran-backed militias operating in Iraq.
On Monday, Treasury’s Office of Foreign Assets Control (OFAC) designated eight Mexican nationals and 12 Mexico-based companies tied to the Sinaloa Cartel’s Los Chapitos faction, alleging the network supplies precursor chemicals and equipment used to produce illicit fentanyl and methamphetamine. The action centered on Culiacán-based Sumilab, S.A. de C.V., its operators in the Favela López family, and a web of affiliated firms accused of shifting ownership on paper after earlier sanctions to evade scrutiny. OFAC said the designations were issued under Executive Order 14059 and, in several cases, E.O. 13224.
“Over 500,000 Americans have died of fentanyl poisoning,” said Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “President Trump has made clear that stopping the deadly flow of drugs into our country is a top national security priority. Under Secretary Bessent’s leadership, the Treasury Department is committed to dismantling the complex financial networks that support these terrorist organizations.”
The department credited multiple U.S. agencies — including the FBI, DEA, Homeland Security Investigations, and Customs and Border Protection — with supporting the investigation. The Sinaloa Cartel and its Los Chapitos faction were previously designated under U.S. counterterrorism and counternarcotics authorities.
On Thursday, Treasury intensified pressure on Iran’s petroleum and petrochemical sectors, sanctioning more than 50 individuals, entities, and vessels alleged to facilitate oil and liquefied petroleum gas exports that generate critical revenue for Tehran. The action, taken primarily under E.O. 13902 and E.O. 13846, targeted what the department described as “shadow fleet” tankers, a China-based crude terminal and an independent “teapot” refinery in Shandong Province, as well as companies in the United Arab Emirates and Hong Kong accused of masking the origin of Iranian cargoes.
“The Treasury Department is degrading Iran’s cash flow by dismantling key elements of Iran’s energy export machine,” Treasury Secretary Scott Bessent said. “Under President Trump, this administration is disrupting the regime’s ability to fund terrorist groups that threaten the United States.”
Treasury also designated shipping and logistics firms linked to ship-to-ship transfers in the Persian Gulf and off Southeast Asia, and identified multiple vessels as blocked property due to the interests of newly sanctioned owners and operators. The department said the measures build on actions in July and August against Iran’s oil export enablers and continue a campaign of maximum economic pressure.
Separately on Thursday, OFAC targeted Iran-backed militia financing and intelligence collection in Iraq under E.O. 13224, as amended. The designations included Muhandis General Company — described as a Popular Mobilization Forces-linked conglomerate controlled by Kata’ib Hizballah figure Abd al-Aziz al-Muhammadawi (Abu Fadak) — and its front company Baladna Agricultural Investments. Treasury also sanctioned three Iraqi bank executives it said abused their positions to benefit the Islamic Revolutionary Guard Corps–Qods Force and militias, and named Kata’ib Hizballah operatives alleged to run a source network collecting information on U.S. forces.
“Treasury is targeting Iran-backed militia groups responsible for the deaths of U.S. personnel,” Hurley said. “Under Secretary Bessent’s leadership, we are working to dismantle the financial networks that enable these terrorist groups to operate. Cutting off their financial flows is essential to protecting American lives and our national security.”
As a result of the designations, all property and interests in property of the named individuals and entities within U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from transactions with them. Entities owned 50% or more by one or more blocked persons are also blocked. Treasury warned that violations can carry civil or criminal penalties and that foreign financial institutions risk secondary sanctions for significant transactions on behalf of designated parties.
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