By Fariba Raad | 2025-05-09

The United States sanctioned six entities and six individuals in the Islamic Republic and China on April 29 for procuring ballistic missile propellant ingredients on behalf of the Islamic Revolutionary Guard Corps (IRGC).

The move came three days after a deadly explosion at Shahid Rajaee Port linked to missile fuel chemicals.

"Iran's aggressive development of missiles and other weapons capabilities imperils the safety of the United States and our partners," US Treasury Secretary Scott Bessent said.

"It also destabilizes the Middle East and violates global agreements intended to prevent the proliferation of these technologies."

The network illegally procured sodium perchlorate and dioctyl sebacate -- critical materials for the production of solid propellant rocket motors used in ballistic missiles -- from China for the Iranian regime, the Treasury said.

Iran-based front company Saman Tejarat Barman Trading Co. procured sodium perchlorate, while China-based Shenzhen Amor Logistics Co Ltd coordinated shipments with previously blacklisted China-based E-Sail Shipping Ltd.

In March, MV Jairan, a vessel owned by the Islamic Republic of Iran Shipping Lines, delivered 24 containers of sodium perchlorate to Shahid Rajaee port.

This was enough to fuel approximately 250 medium-range missiles, Maritime Executive reported.

The port explosion reportedly resulted from improper handling of the shipment, private security firm Ambrey said.

Impact on military capabilities

The chemical, processed into ammonium perchlorate at the Iranian Parchin and Khojir facilities, comprises 70% of the standard fuel load in the regime's solid-fueled missiles, Maritime Executive reported.

Among them, the Khybar-shikan, Fattah, Fateh-110 and Zolfaghar systems.

The sodium perchlorate cargo was transferred without formal government oversight to designated storage areas, bypassing official customs data and maritime organization records, said Iranian energy expert Dalga Khatinoglu.

Iran's economy suffered approximately $1.2 trillion in damages between 2011 and 2023 due to previous sanctions, said the former head of Iran's Chamber of Commerce, Hossein Selahvarzi.

The new sanctions will force the regime to seek more expensive alternative suppliers or invest in domestic production capabilities, defense experts said.

Ballistic missiles are the cornerstone of its defense strategy, they said, noting that any delays or cost increases in acquiring propellant ingredients could significantly impact its military capabilities.

Tehran will probably seek to expand its sanctions evasion mechanisms, security specialist and University of Rome Tor Vergata professor of international relations Shaheen Modarres told Pishtaz.

It will likely do this "through crypto-based financial channels, reflagged maritime assets, and front companies in non-aligned economies across Central Asia, East Africa, and the Caucasus," Modarres said.

But this is unlikely to offset the cumulative effect of sanctions and broader US efforts to target the regime's oil and nuclear programs, which will challenge the IRGC's operational capacity and the regime's strategic ambitions, experts said.