Iran Leverages Shadow Networks and Crypto to Dodge Tough U.S. Sanctions

The Trump administration’s latest "economic D-Day" sanctions target Iran’s core revenue streams, including oil exports, banking, gold, shipping and high-tech imports. In response, Iran is tapping an opaque network of businessmen, led by 53-year-old billionaire Babak Zanjani, who was released from prison in 2025 and quickly re-entered the market. The network, which spans companies in Malaysia, Tajikistan, Turkey and the United Arab Emirates, is now exploring cryptocurrency to move funds and secure oil shipments through the Strait of Hormuz.

U.S. authorities have used past prosecutions, notably the 2016 arrest of Turkish-Iranian trader Reza Zarrab, to gain insight into these channels, but analysts warn that Tehran’s decades-long experience in sanction evasion may blunt the impact of the new rules. Zanjani has even offered his firm as a bridge for U.S.-Iran economic dialogue, while the United States added his associates to a sanctions list in January 2026 and expanded restrictions in July. Whether the heightened pressure will cripple the shadow economy or simply push it deeper underground is still unclear.