Iran-backed militias sending money back to cash-starved IRGC, U.S. says

Iran-backed militias in the region have been sending money back to the Islamic Revolutionary Guard Corps to relieve the economic pressure it's under after nine months of war, U.S. CENTCOM Commander Adm. Brad Cooper said Friday. Why it matters: While the U.S. military has been preparing for a possible resumption of major combat operations against Iran, the Trump administration continues to put immense pressure on the regime with its naval blockade and severe sanctions. U.S. officials say the economic chokehold is causing serious difficulties for Iran and its security forces, while making the regime frustrated and aggressive. The White House hopes the pressure will induce Iran to make a deal that includes nuclear concessions. But so far, that hasn't happened. Driving the news: Cooper said the naval blockade has cost Iran $25 billion in lost oil revenue. Additionally, CENTCOM and the Treasury Department have managed in recent weeks to freeze $350 million that Iran had in cryptocurrency. Behind the scenes: In a video message released Friday, Cooper revealed that Iran-backed groups such as Hezbollah, Hamas and Shia militias in Iraq — which have been funded by the IRGC for years — now have to give the money back. "The financial strain on Iran's military has become so significant that there are reports about Iran-aligned militia groups across the region withholding payments for their soldiers in order to funnel money back to the IRGC, which also isn't paying its troops," he said. Cooper said the Iranian government is withholding salaries, pensions and benefits from public sector workers, including the internal security forces and the IRGC. State of play: Cooper attributed the significant increase in Iranian attacks against ships in the Strait of Hormuz to "desperation" within the IRGC. Despite those attacks, he said that the Strait of Hormuz is still open — with 400 ships and 100 million barrels of oil moving through it over the last week. Yes, but: In recent weeks, CENTCOM has almost completely stopped conducting strikes against Iranian anti-ship missiles and attack drone launchers in the area of the strait. The pause in strikes, which was ordered by the White House to avoid escalating the war ahead of the midterm elections, made Iran more confident about launching attacks, a U.S. official said. Consequently, CENTCOM is concerned that the increase in ship attacks will cause shipping companies to think twice about transiting the strait — resulting in less oil coming out and a spike in oil prices. U.S. officials say Iran is also attacking more ships to try to raise oil prices and ratchet up pressure on Trump ahead of the midterms. What to watch: The White House and Qatari mediators are still waiting to hear back from Iran about a U.S. counterproposal to end the war. "It's still in internal deliberations in Tehran," a U.S. official said. Regional mediators told Iranian Foreign Minister Abbas Araghchi in recent days that Iran shouldn't wait until after the midterms to give its response, a regional source with direct knowledge said. The regional mediators told Iran there's no guarantee that Trump will be more conciliatory after the midterms — on the contrary, he might be more aggressive.

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