Iran Used Crypto to Evade Sanctions, Senate Report Reveals

A forthcoming Democratic Senate report details Iran's extensive use of the cryptocurrency USDT (Tether) to circumvent U.S. sanctions, according to a Wall Street Journal report. The stablecoin has become a primary payment method for the Iranian regime and has also been used to fund proxy organizations, including Hezbollah. This financial revelation emerges as the U.S. intensifies economic pressure on Tehran to cripple its funding channels.

Recent U.S. measures include cutting off Iranian airlines from major regional routes and blocking Iran's leading commercial bank from transactions in the UAE and Turkey. A senior U.S. Treasury official recently visited Europe and the Middle East, warning trade partners they must choose between dealing with Iran or Washington. These actions have exacerbated Iran's economic crisis, prompting increased efforts by the regime to find covert, alternative funding sources.

In response to the economic pressure, Iran is attempting to exert counter-leverage through maritime routes. An editorial in the regime-aligned Kayhan newspaper called for halting energy trade and raising U.S. fuel prices before the midterm elections to curb Washington's ambitions. The editorial argued that negotiation is ineffective, and only by increasing the economic cost to the U.S. and using "the language of missiles" can Iran restrain American aspirations.

Iranian military officials have asserted control over key waterways. Admiral Habibollah Sayyari claimed full control of the Strait of Hormuz, the Persian Gulf, and the northern Indian Ocean by Iran's navy and the Revolutionary Guards' naval force. He stated they would not permit passage for those seeking to do so. Revolutionary Guards spokesperson Hossein Mohabbi further clarified that the Strait of Hormuz is an active operational zone for their forces against U.S. submarines.

Separately, a source close to Iran's UN mission told the IRNA news agency that no further meetings with the U.S. are planned, and Tehran awaits a U.S. response after conveying its positions via a Qatari mediator.