In the second move in a week taking aim at the money networks of the Revolutionary Guards, or IRGC, the US Treasury also blacklisted a second central bank official, Iraq's Al-Bilad Islamic Bank and its top two executives, and a liaison between IRGC and Hezbollah, which Washington has designated an worldwide terrorist group.
The exact ramifications of the sanctions for Iran's economy were not immediately clear.
The US has imposed sanctions against governor of Iran's central bank Valiollah Seif and Iraq-based Al-Bilad Islamic Bank for transferring "millions of dollars" for Iran's Islamic Revolution Guards Corps (IRGC), Press TV reported.
The new sanctions are part of the administration's efforts to address Tehran's "malign influence" in the region, an effort that, in conjunction with President Donald Trump's decision to remove the USA from the Iran nuclear deal and Monday's controversial opening of the U.S. embassy in Jerusalem, has led to a spike in tensions across the Middle East.
The move comes a week after U.S. President Donald Trump announced that the United States was pulling out of the nuclear deal between Tehran and world powers.
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"The United States will not permit Iran's increasingly brazen abuse of the global financial system", Treasury Secretary Steven MnuchinSteven Terner MnuchinTrump offers hope for peace in recorded remarks at US Embassy opening in Jerusalem The Hill's Morning Report - Sponsored by CVS Health - Trump makes history with foreign policy decisions The Hill's Morning Report - Sponsored by FICO - Paul Ryan's rough ride MORE said in a statement. "The global community must remain vigilant against Iran's deceptive efforts to provide financial support to its terrorist proxies".
The sanctions had been anticipated to be adopted by extra U.S actions within the coming weeks, because the Trump administration works to dismantle the principle banking conduits exploited by Iran and its Revolutionary Guards to transform Iranian rials into euros or .
The US says it's also imposing so-called secondary sanctions on Seif.
Tensions between Washington and Tehran has been running high since US President Donald Trump announced the withdrawal from the Iran nuclear deal and vowed to reinstate all nuclear-related sanctions on Iran. USA officers had been reaching out Tuesday to central banks in different nations within the Middle East and Europe to tell them of the sanctions and encourage them to right away freeze belongings the financial institution has overseas.
Hezbollah fought a war with Israel in 2006, and Israeli officials have been deeply concerned about the prospect of another confrontation.