U.S. says Iran-backed militias reverse funding flow to cash-strapped IRGC

U.S. Central Command (CENTCOM) Commander Adm. Brad Cooper stated Friday that Iran-backed militias in the region are now sending money back to the Islamic Revolutionary Guard Corps (IRGC) to alleviate the severe economic pressure the military body faces after nine months of war. Cooper disclosed that groups traditionally funded by the IRGC, including Hezbollah, Hamas, and Shia militias in Iraq, are withholding payments for their own soldiers to funnel cash to the Iranian military, which is also failing to pay its troops.

The shift in financial flows underscores the impact of U.S. economic measures on the Iranian regime. Cooper noted that the naval blockade has resulted in $25 billion in lost oil revenue for Iran. In addition to the blockade, CENTCOM and the Treasury Department have frozen $350 million in cryptocurrency held by Iran in recent weeks. U.S. officials assert that this economic chokehold is causing serious difficulties for Iran and its security forces, contributing to a frustrated and aggressive posture from the regime. The White House aims to use this pressure to induce Iran into a deal involving nuclear concessions, though no such agreement has yet been reached.

Cooper attributed the recent surge in Iranian attacks against ships in the Strait of Hormuz to "desperation" within the IRGC. Despite these attacks, he confirmed the strait remains open, with 400 ships and 100 million barrels of oil transiting during the last week. The increased aggression follows a pause in CENTCOM strikes against Iranian anti-ship missiles and attack drone launchers near the strait. A U.S. official said the White House ordered this pause to avoid escalating the war ahead of midterm elections, a move that made Iran more confident in launching attacks.

CENTCOM is concerned that the rise in ship attacks may cause shipping companies to hesitate about transiting the strait, potentially reducing oil output and spiking prices. U.S. officials also believe Iran is attacking more ships specifically to raise oil prices and increase pressure on President Trump before the midterms.

Diplomatic efforts continue as the White House and Qatari mediators await a response from Iran regarding a U.S. counterproposal to end the war. A U.S. official stated that the proposal is still in internal deliberations in Tehran. Regional mediators recently told Iranian Foreign Minister Abbas Araghchi that Iran should not wait until after the midterms to respond, warning that there is no guarantee President Trump will be more conciliatory afterward; on the contrary, he might become more aggressive.