How U.S. Sanctions Target Networks That Supply Iran’s Missiles and Drones

In early May 2026 the U.S. Treasury Department expanded sanctions meant to disrupt Iran’s missile and drone programs. The Office of Foreign Assets Control (OFAC) has designated individuals, firms, and ships that are said to help Iran buy parts and materials. These measures have been used while the United States seeks to cut off funding and procurement routes.

The May 8, 2026 action named companies in China and elsewhere. For example, OFAC designated Hitex Insulation Ningbo Company Limited for supplying carbon fiber and honeycomb fabric that can be used in Shahed-series unmanned aerial vehicles. The Treasury has also targeted vessels in a so-called shadow fleet and small Chinese 'teapot' refineries that processed Iranian oil. Officials have warned foreign banks about secondary sanctions if they process Iran-linked transactions, while some Chinese authorities have moved to block or criticize U.S. measures.

These steps have been presented as part of a broader campaign called 'Economic Fury' that aims to deny Iran revenue and materials for weapons. Although sanctions cannot stop all procurement, they have been used to raise costs and complicate supply chains.