Iran-Backed Militias Funnel Funds to IRGC Amid Economic Crisis

U.S. Central Command Commander Brad Cooper announced that Iran-backed militia groups, including Hezbollah, Hamas, and Iraqi factions, are funneling money back to the Islamic Revolutionary Guard Corps (IRGC). This reversal of typical funding flows follows U.S. initiatives that blocked approximately $25 billion in crude oil exports and froze $350 million in cryptocurrency assets.

Cooper reported that the financial strain is so severe that the IRGC and the Iranian government have withheld salaries and pensions from government workers and security forces. He noted that some militia groups are withholding payments for their own soldiers to support the IRGC.

The economic crisis follows a period of conflict starting in February, characterized by Iranian attacks on commercial vessels in the Strait of Hormuz. An interim ceasefire reached in June collapsed in July after further ship attacks. President Donald Trump recently stated that strikes against Iran are not currently planned, citing productive discussions. Meanwhile, Iranian President Masoud Pezeshkian has denied that Iran is seeking nuclear weapons and stated the country will not bow to coercion.