U.S. economic pressure and blockades impact Iranian military funding

U.S. economic pressure against Iran is intensifying through naval blockades and targeted sanctions, significantly impacting the country’s ability to fund its military and maintain domestic stability. U.S. Central Command chief Adm. Brad Cooper reported that a naval blockade has prevented Iran from exporting at least $25 billion in crude oil, while nearly $350 million in cryptocurrency assets have been frozen.

The resulting financial strain has forced the Iranian regime to withhold salaries, pensions, and benefits across several sectors, including energy, manufacturing, and the Islamic Revolutionary Guard Corps (IRGC). Reports indicate that Iran-aligned militia groups are also withholding payments to soldiers to redirect funds to the IRGC, which is itself struggling to pay its troops.

Despite these measures, questions remain regarding the effectiveness of enforcement. While the U.S. has targeted various enablers, Turkey’s state-owned Halkbank recently avoided fines or admissions of wrongdoing in a case involving the alleged transfer of $20 billion in Iranian oil proceeds. Justice Department filings suggested this reprieve was linked to Turkey’s role in brokering a ceasefire in Gaza, potentially signaling that certain Turkish financial channels remain accessible for Iranian funds.