Iran's hidden military network bypasses US sanctions to procure $2 billion in hardware

It has been determined that Iran has established a network of more than 5,000 covert military entities to bypass the naval blockade and international sanctions imposed by the US since January 2025. This system, uncovered through a collaboration between Reuters and 240 Analytics, appears to operate under the Ministry of Defense, facilitating the entry of equipment critical to missile and drone programs into the country.

The network is financed through front companies, foreign brokerage firms, and revenue generated from illicit oil sales. Explosives, heavy-duty trucks, and precision machine parts sourced from countries such as China, Russia, and Germany are transported to Iran via land, sea, and air.

In these operations, where the Islamic Revolutionary Guard Corps (IRGC) and the state-controlled Bank Sepah play key roles, financial methods that avoid traditional money transfers are utilized. As a result, the supply of critical military materials, such as rocket fuel, continues uninterrupted despite ongoing conflicts and strict sanctions.