Sanctions are coming: Iranian intel warns ministries, firms on 'snapback'
Sun setting over an offshore oil rig in the Persian Gulf
Iran’s Ministry of Intelligence issued secret guidance warning ministries and major companies to prepare for the likely return of punishing United Nations sanctions, documents reviewed by Iran International show.
A procurement network tied to a shadowy Iranian military organization stretches into Europe using front companies to supply sensitive technology to the Islamic Republic’s nuclear program, according to an Iran International investigation.
The network is run on behalf of the Organization of Defensive Innovation and Research (SPND), a Defense Ministry body established in 2010 which the United States calls a successor to Iran’s alleged pre-2004 nuclear weapons program.
Western governments have sanctioned SPND for years, citing its role in the potential proliferation of weapons of mass destruction.
The network purchases dual-use and military-grade equipment, including in the field of neutronics—a highly sensitive discipline vital to controlling chain reactions in nuclear reactors and, in a military context, producing or controlling neutrons for weapons design, a source familiar with its activities said.
“This network purchases dual-use and military-grade equipment, including neutronics and other sensitive components, on behalf of SPND,” the source said.
Such capabilities can be used for reactor safety, protection from radiation and can have military applications for producing nuclear weapons.
Isatis group and SPND links inside Iran
Inside Iran, the procurement effort is anchored by companies operating under the Isatis name. Corporate and academic records link two SPND personnel, Hadi Zakeri Khatir and Ebrahim Haji-Ebrahimi, to Isatis Danesh Tolid Tajhiz, one of the group’s entities.
Zakeri Khatir, a faculty member at a university linked to Iran's Islamic Revolutionary Guard Corps, serves as vice chairman of the board. Haji-Ebrahimi is listed as a technical engineer with a background in nuclear fusion studies.
Isatis presents itself online as a holding company with multiple subsidiaries in steel, cement and industrial equipment.
However, Iran International found that some of these firms—such as Isatis Foolad Tajhiz and Isatis Siman Tajhiz—remain unregistered in official records, suggesting the size and activities of the firm are not readily transparent.
Isatis Holding did not respond to requests for comment by Iran International.
European hub in Vienna
The network’s overseas hub is Vienna, according to the informed source and company registration documents obtained by Iran International.
Austrian commercial records show that Mohammad-Amin Kharazmi, son of Isatis co-founder Saeed Kharazmi, manages Better Way GmbH, a company registered in 2018 at a residential address in Vienna’s Margareten district.
Mohammad-Amin Kharazmi told Iran International: “I categorically deny any commercial or other activities connected, directly or indirectly, to Iran’s nuclear program.” He said he never had any legal or actual role in those entities.
The same address is used by two other firms—Pioneer Bio Instrument GmbH, a registered medical equipment supplier, and Petrophoenixx Handels GmbH—both with Iranian nationals in management roles.
Neither company responded to requests for comment by Iran International.
Kharazmi said many Iranian firms provide foreign addresses just to exaggerate their profile.
Better Way lists no website or contact details. Its declared business is online retail, with reported assets of roughly €420,000 at the end of 2023. On its own website, Isatis Danesh Tolid Tajhiz names Better Way as a European partner.
Legal cover, strategic depth
Israeli strikes during a 12-day war in June targeted SPND sites and killed multiple nuclear scientists.
The United States has repeatedly sanctioned SPND and affiliated companies, citing their role in “dual-use research and development activities applicable to nuclear weapons and nuclear weapons delivery systems.”
SPND’s work has drawn repeated censure from the International Atomic Energy Agency, and US sanctions target more than 30 of its scientists and multiple front companies.
In 2024, Iran’s parliament passed a law granting SPND official recognition under Iranian law. The act placed the organization directly under the authority of the Supreme Leader, exempted its budget from parliamentary oversight, and allowed it to form academic and commercial entities with legal protection.
Israel's defense minister on Monday hit back at a list published by media linked to Iran's military which named Israeli officials in an assassination list, appearing to threaten Supreme Leader Ali Khamenei's life in response.
"I suggest to the Iranian dictator Khamenei that when he leaves the bunker, he occasionally look up at the sky and listen carefully to every buzz," Katz wrote on X Monday.
"The participants of the 'red wedding' are waiting for him there," he added referring to the codename of an Israeli campaign starting on June 13, 2025, in which a series of coordinated strikes killed several of Iran’s most senior military leaders.
The operation, named after a massacre scene in the Game of Thrones TV series, targeted top figures including Revolutionary Guards commander Hossein Salami, chief of staff of armed forces Mohammad Bagheri, and senior general Gholam Ali Rashid.
Katz's warning followed the release of an assassination list by the Islamic Revolutionary Guard Corps-affiliated Telegram channel Saberin News amid continued tensions between Israel and Iran despite a US brokered ceasefire on June 24 which ended the 12-day conflict.
Last week, the new intelligence chief of Iran’s Revolutionary Guards said Tehran views the ceasefire with Israel as merely a pause to an ongoing war, as Iran's security establishment doubled down on confrontational rhetoric toward its arch-nemesis
The Islamic Republic’s massive investment in this year’s Arbaeen pilgrimage to Iraqi holy cities is stirring fresh outrage at home, where Iranians face spiraling inflation, unpaid wages and hours-long power and water outages.
As cities suffer blackouts and food rots in fridges, many ask why the state can swiftly and efficiently mobilize for a symbolic cross-border march—yet fails to provide basic services to its own people.
“Mr. President, if in these circumstances all preparations—from storing water, bread, and food to providing electricity, internet, foreign currency and transport—can be arranged for Arbaeen through jihadi management, then please do the same for non-Arbaeen matters,” wrote Islamic studies scholar Mahmoud Nejati-Hosseini in a widely shared post on X.
Economist Sadegh Alhosseini, a professor at Tehran University, slammed Tehran Municipality for spending millions on the pilgrimage while failing to pay sanitation workers and contract staff.
“The pilgrims of Imam Hussein do not need your services. If you have money, pay your workers’ wages,” he wrote on X.
Billions spent
Each year, authorities allocate vast sums to Arbaeen—covering transport, healthcare, logistics, and religious outreach.
This year’s effort includes $67 million in subsidies, 1,550 tons of rice, meat, and sugar for religious camp (mawkib) organizers and support from virtually every branch of government—from the Revolutionary Guards to municipal bus fleets.
Perks for pilgrims include free transportation, meals, lodging, mobile services and special leave for civil servants.
“Where does the money come from?” one user asked on X. “From my pocket and the rest of the people—people who, in 60°C heat, lose power for at least two hours every day.”
What is Arbaeen?
The Arbaeen pilgrimage marks the end of the 40-day mourning period after Ashura, commemorating the martyrdom of Imam Hussain ibn Ali, the Prophet Muhammad’s grandson, in 680 AD.
The procession draws millions of Shia pilgrims, many of whom walk long distances to the shrines of Karbala and Najaf.
Tehran has heavily promoted the event in recent years. Iranian participation has surged from 40,000 in 2010 to around 3.6 million in both 2023 and 2024, according to official figures. Over 2.8 million have already registered for this year’s walk, set for August 14.
Shrine officials say more than 20 million people take part—a figure that likely includes local attendees and repeat visitors during the extended mourning period.
Soft power
Officials frame Arbaeen as more than a religious duty—it’s a strategic asset. With Saudi Arabia hosting the Hajj, Iran has cast Arbaeen as a rival spectacle.
Supreme Leader Ali Khamenei has called the pilgrimage a “combat rehearsal” and a show of ideological unity.
The mawkibs lining the route provide rest, food and shelter, but also serve as platforms for political messaging and solidarity with groups like Iraq’s Hashd al-Shaabi militia.
Above all, the Arbaeen appears to have become an opportunity for the Islamic Republic to reinforce its vision of transnational Shia identity and resistance.
Iran’s top security chief is set to urge Iraqi Shia factions to expedite approval of legislation reforming the Popular Mobilization Forces and fully integrating them into the state security apparatus, a source told Iran International.
Iran’s newly appointed Supreme National Security Council secretary, Ali Larijani, is undertaking consultations as part of his first foreign trip since taking office.
The talks aim to secure backing from key Shia groups for the PMF law project, which seeks to formalize the status of Iran-backed militias integrated into Iraq’s security apparatus, according to the Baghdad-based source.
The source told Iran International that Larijani will meet with Shiite leaders to stress the “necessity” of passing the legislation.
Larijani arrived in Baghdad on Monday as part of his first regional diplomatic tour as Iran's top security chief that also includes Lebanon. He has indicated plans to sign a bilateral security agreement with Iraq and engage various political currents.
The timing of Larijani’s visit follows recent remarks by Iraqi Prime Minister Mohammed Shia al-Sudani, who emphasized that weapons should be controlled by the state and reported efforts to curb Iran-aligned militias’ participation in the June 12-day conflict between Israel and Iran. Iraqi authorities say they have prevented multiple planned attacks by these groups on US military bases.
A member of Shia Popular Mobilization Forces walks on the street, after liberating the city Hawija.
Since the 2003 US-led invasion of Iraq, the country’s security landscape has been significantly influenced by various militias, many of which maintain close ties with Iran.Among these, the Popular Mobilization Forces (PMF), an umbrella organization composed primarily of Shia militias, was initially formed to combat the Islamic State.
Although integrated into Iraq’s formal security forces in 2016 and legally subordinate to the Iraqi prime minister, the PMF continues to operate with a high degree of autonomy, with many of its factions maintaining strong Iranian connections.
The PMF consists of approximately 67 armed groups, nearly all of which are backed by Iran. These militias play a crucial role in Iraq’s security environment but have also been a source of controversy due to their influence and perceived external alignment.
Efforts to reform the PMF aim to reduce this influence by formalizing their integration under Iraqi state control.
In March 2025, the Iraqi parliament introduced draft legislation seeking to reform the PMF by placing it more firmly under the authority of the prime minister as commander-in-chief, explicitly aiming to limit external influence, including from Iran.
The proposed law also includes provisions such as a mandatory retirement age for senior commanders, potentially replacing key figures with longstanding Iranian ties.
Iranian border guards, in coordination with the navy, have seized a tanker carrying more than 2 million liters of what authorities described as smuggled diesel fuel in the Gulf of Oman, state media reported on Monday.
The vessel, identified as Phoenix and sailing under the flag of a third country --Cook Islands -- was intercepted in Iran’s exclusive waters near Jask, said Ahmadali Goudarzi, commander of the border guards.
He said the operation was carried out following aerial surveillance and electronic monitoring that indicated an alleged large-scale smuggling attempt.
Authorities said 17 foreign nationals on board were detained and transferred to Jask for legal proceedings.
The cargo’s value was estimated at 759 billion rials (about $840,000), according to state media.
Iran has stepped up maritime enforcement in recent months, especially in waters near the Strait of Hormuz and the Persian Gulf, where fuel smuggling remains a persistent issue due to price differences with neighboring countries.
In April, Iran’s Revolutionary Guard Corps (IRGC) Navy said it had seized a tanker carrying 100,000 liters of smuggled fuel and detained six people, according to Fars News Agency. That followed a separate operation in which two tankers allegedly transporting more than 3 million liters of diesel were intercepted and taken to the port of Bushehr.
The IRGC regularly announces such seizures as part of what it calls efforts to curb fuel trafficking in the region, a key route for global oil shipments. Iran has also seized tankers over maritime disputes or in response to international sanctions enforcement.
The Intelligence Ministry said that the return of so-called snapback sanctions will include a ban on arms sales, freezing of assets and foreign currency accounts of companies abroad.
“Re-sanctioning of legal and natural persons active in industries such as oil, petrochemicals, banking, shipping, insurance and sensitive technologies will be activated,” the document said.
Potential fallout could roil markets and exacerbate unemployment and deepen popular discontent, the ministry added.
“Severe currency fluctuations, reduced purchasing power, increased unemployment, layoffs and heightened social discontent are to be expected,” the Intelligence Ministry said.
The snapback mechanism is part of UN Security Council Resolution 2231, which endorsed a 2015 deal over Iran's disputed nuclear program called the Joint Comprehensive Plan of Action (JCPOA).
Under Resolution 2231, any party to the accord can file a complaint accusing Iran of non-compliance. If no agreement is reached within 30 days to maintain sanctions relief, all previous UN sanctions would automatically “snap back,” including arms embargoes, cargo inspections and missile restrictions.
Iran’s Intelligence Ministry also pointed to potential alternative partners for the Islamic Republic to evade the sanctions.
“Identify alternative suppliers in countries like China, Russia, Iraq, etc., which will be less affected by sanctions,” the statement said.
The guidance also warned of renewed threats to national security including cyberattacks on critical infrastructure.
“Increased targeted cyberattacks on economic infrastructure, focusing on supply chains, automation, and financial management, as well as efforts by foreign intelligence services to infiltrate through third parties, contractors, or organizational applications, will be some of the threats,” the statement said.
France, the United Kingdom and Germany told Iran they would restore UN sanctions unless it reopened and produced concrete results by the end of August.
Iranian diplomates last met representatives of the three European countries in Istanbul on July 25.
Iran’s Foreign Ministry spokesman Esmail Baghaei described the meeting with Britain, France and Germany as a “test of realism” for the E3 powers, calling it a chance for them to correct past positions.