The U.S Treasury Department added Lebanese companies Synergy SAL and BS Company to the list of sanctions. Both companies have imported tens of thousands of metric tons of Iranian oil into Syria by sea.

Hours later An Iraqi company and two of its affiliates were also added to list of sanctions by the Treasury Department for their connection to the Quds Force of the Islamic Revolutionary Guard Corps (IRGC).

The South Wealth Resources Company (SWRC) is accused of helping Iran’s Quds Force evade sanctions by smuggling hundreds of millions of dollars worth of weapons. These weapons are now in the hands of the IRGC-backed militia in Iraq.

According to the State Department, the company and its two affiliates, al-Assadi and al-Hassani have all violated U.S sanctions against Iran.

Treasury Secretary Steven Mnuchin said in a statement: "Treasury is taking action to shut down Iranian weapons smuggling networks that have been used to arm regional proxies of the IRGC Qods Force in Iraq, while personally enriching regime insiders.”

According to Reuters, US officials said that the company's operation also benefited Abu Mahdi al-Muhandis, a previously sanctioned Iraqi adviser to IRGC-Quds Force commander Qassem Soleimani. Al-Muhandis is the head of the weapon’s smuggling network and several assassinations and bombing of embassies in Iraq.