U.S. imposes new sanctions on Iran airline over proliferation

The United States on Wednesday imposed new sanctions on Iran's biggest airline and its shipping system, accusing them of transporting lethal aid and weapons of mass destruction proliferation.

The new sanctions come just days after an end of the week prisoner swap between the historic foes, a rare act of cooperation since tensions escalated after U.S. President Donald Trump pulled back from the 2015 Iran nuclear accord.

The U.S. State Department targeted Shanghai-based ESAIL Shipping Company, which U.S. Secretary of State Mike Pompeo said "intentionally transports illegal materials from Iran's Aerospace Industries Organization, which oversees all of Iran's missile industry" and has worked with Iranian organizations subject to U.N. sanctions.

The sanctions on ESAIL and additional sanctions on Islamic Republic of Iran Shipping Lines will take impact in June 2020.

Also blacklisted was an Iranian shipping system engaged with smuggling lethal aid from Iran to Yemen on behalf of the Islamic Revolutionary Guards Corps (IRGC) and its first class outside paramilitary and espionage arm, the Quds Force.

New sanctions were also imposed on Mahan Air and three of its general sales agents by the State Department and the U.S. Treasury Department over its alleged job in weapons of mass destruction proliferation, expanding on counterterrorism sanctions imposed in 2011 over support it gave to the IRGC forces, Pompeo said.

"These programs included the siphoning of funds away from the oppressed Iranian individuals, and they augment the system's campaign of fear and intimidation at home and all through the world," Pompeo said.

In addition to the sanctions on the companies, Pompeo threatened additional sanctions on those who conduct illegal transactions with them.

Despite the latest round of sanctions, Pompeo said he trusted that the prisoner exchange on Saturday may lead to the release of different Americans held in Iran, however he cautioned against false optimism.

"I do trust that the exchange that occurred will lead to a broader discussion on consular affairs. We still have Americans held in Iran, such a large number of without a doubt. We are attempting to attempt to build up that, to expand that, to use this as a chance to continue that exertion," he said.