For years, the United States has relied on economic sanctions to constrain Iran’s ballistic missile program, unmanned aerial vehicle production, and support for proxy forces. Iran has adapted rather than collapsed. It has built a decentralized architecture that converts sustained sanctions pressure into a strategic advantage, sustaining military production, financing proxies, and enabling deniable operations through global supply chains, illicit finance, and criminal partnerships.

In February 2026, the U.S. Treasury sanctioned more than 30 individuals, entities, and vessels tied to Iran’s illicit petroleum sales and procurement networks for ballistic missiles and UAVs. Twelve shadow-fleet tankers transporting hundreds of millions of dollars in Iranian oil were designated. Additional actions in April and May targeted procurement networks across China, Hong Kong, and the Middle East, supplying components for Iranian Shahed-series drones and missiles.