Iran’s worsening financial situation is putting pressure on its regional allies, with groups linked to Hezbollah, Hamas, and Iraqi militias reportedly diverting funds to Iran’s Islamic Revolutionary Guard Corps (IRGC). US Central Command chief Adm. Brad Cooper outlined the development in a video statement released Friday, following nine months of war and growing economic strain on Tehran.

Cooper estimated that the US naval blockade has cost Iran approximately $25 billion in lost oil revenue. In a separate financial operation, CENTCOM and the US Treasury Department froze $350 million in Iranian cryptocurrency assets in recent weeks.

Iran-aligned groups reportedly redirecting funds to support the IRGC

Cooper said the financial difficulties have reportedly become so serious that some Iran-backed militias are holding back pay from their own fighters to send money to the IRGC, which is also struggling to meet its payroll obligations.

“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,” Cooper asserted.

The CENTCOM commander also linked increased Iranian threats against commercial shipping in the Strait of Hormuz to mounting desperation within the IRGC. Despite the tensions, he said the strategic waterway remained open, with approximately 400 vessels and 100 million barrels of oil moving through the strait during the preceding week.

Washington maintains economic pressure as diplomatic efforts continue

CENTCOM has largely suspended strikes in recent weeks against Iranian military positions considered threats to shipping through the Strait of Hormuz. Meanwhile, the Trump administration continues to use economic pressure in an effort to bring Tehran to an agreement.

According to an Axios report published Friday, the White House and Qatari mediators were waiting for Iran to respond to a US counterproposal intended to bring the war to an end.

An American official cited by Axios said the administration ordered the pause in strikes to avoid intensifying the conflict before the US midterm elections. The report came as President Donald Trump’s approval rating had fallen to 38%, according to NBC News polling.

The Axios report also said US officials believe Iran is stepping up attacks on vessels traveling through the Strait of Hormuz to drive up global oil prices and put additional political pressure on Trump ahead of the elections.