U.S. Central Command reports that Iran-backed militias across the Middle East are withholding pay from their own fighters to funnel cash back to the cash-strapped Islamic Revolutionary Guard Corps. A U.S. naval blockade has stripped Tehran of $25 billion in oil revenue and frozen $350 million in cryptocurrency, forcing the regime to halt public salaries. Meanwhile, White House-ordered pauses on U.S. strikes near the Strait of Hormuz coincide with heightened Iranian ship attacks.
Proxies funneling money to the IRGC
- ▪U.S. Central Command chief Adm. Brad Cooper cited reports that Iran-aligned regional proxy groups are withholding salaries from their own fighters to funnel funds back to the Islamic Revolutionary Guard Corps.
- ▪U.S. Central Command Commander Adm. Brad Cooper stated that Iran-backed militias, including Hezbollah, Hamas, and Iraqi groups, are redirecting money back to the Islamic Revolutionary Guard Corps after nine months of war.
Financial strain impacts Iranian military pay
- ▪U.S. Central Command Commander Adm. Brad Cooper stated that the Islamic Revolutionary Guard Corps is failing to pay its own military troops amid severe financial strain.
- ▪The Iranian government is withholding salaries, pensions, and benefits from public-sector workers, internal security forces, and Islamic Revolutionary Guard Corps personnel due to financial strain.
U.S. financial enforcement
- ▪U.S. Central Command and the U.S. Treasury Department froze approximately $350 million in Iranian cryptocurrency assets in October 2026.
- ▪The U.S. Financial Crimes Enforcement Network issued a warning to financial institutions regarding potential Iranian regime misuse and diversion of religious tithes called khums.
- ▪U.S. Treasury Secretary Scott Bessent launched Operation Economic Outcast in August 2026 to target smuggling routes, shadow banking networks, and financial channels supporting Iran.
US sanctions Iranian banking entities
- ▪The U.S. Treasury Department sanctioned the Iraq-based International Development Bank for Investment and Finance on October 15, 2026 for providing Iran access to U.S. dollars and proxy financing.
- ▪The U.S. Treasury Department designated Jazireh International Bank Company and Chabahar International Bank Overseas Company on October 15, 2026 for operating in the Iranian financial sector.
U.S. naval blockade
- ▪The United States launched a retaliatory naval blockade targeting Iran-linked shipping in April 2026 following an Iranian blockade in the Strait of Hormuz.
- ▪The U.S. naval blockade has cost Iran an estimated $25 billion in lost crude oil export revenue since the war began.
Houthi rebel military campaign
- ▪Yemen's Houthi rebels launched a maritime blockade against Saudi Arabia in July 2026, conducting strikes against Saudi oil tankers, energy infrastructure, and airports.
- ▪The Wall Street Journal reported that increased military assistance and front-line guidance from the Islamic Revolutionary Guard Corps helped Yemen's Houthi rebels take control of Yemen's Red Sea coast.
Attacks on shipping in the Strait of Hormuz
- ▪The Islamic Revolutionary Guard Corps reported that an oil tanker carrying over two million barrels of crude oil caught fire after striking a mine while transiting the Strait of Hormuz on October 17, 2026.
- ▪Iranian attacks on commercial shipping in the Strait of Hormuz have killed more than 20 civilian mariners since February 2026.
Iranian maritime trade restrictions
- ▪The Iranian government has restricted maritime trade, preventing Iran from exporting or importing goods by sea except for humanitarian aid.
- ▪Islamic Revolutionary Guard Corps Navy Chief Adm. Ali Ozmai warned in October 2026 that any vessels turning off tracking systems while transiting the Strait of Hormuz would be considered hostile.
Strait of Hormuz oil transit
- ▪U.S. Central Command chief Adm. Brad Cooper stated that 400 ships carrying 100 million barrels of oil transited the Strait of Hormuz during the second week of October 2026.
- ▪U.S. Central Command chief Adm. Brad Cooper stated that U.S. forces have helped escort and usher out more than one billion barrels of oil through the Strait of Hormuz.
U.S. midterm election factors
- ▪U.S. officials stated that Iran increased attacks on ships in the Strait of Hormuz to raise global oil prices and pressure President Donald Trump before U.S. midterm elections.
- ▪The White House ordered U.S. Central Command to pause military strikes against Iranian anti-ship missile launchers and drone positions near the Strait of Hormuz to avoid escalation before U.S. midterm elections.
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