Iran Has A Secret Network Of 5,000 Military Agencies. It Managed to Import Billions In Hardware Despite the U.S. Blockade.

Iran has been importing billions of dollars worth of military equipment and components through a hidden network of more than 5,000 agencies, allowing its armed forces to continue receiving supplies despite U.S. sanctions and a naval blockade imposed during the ongoing war.

An investigation by Reuters found that one agency alone imported $2.3 billion in goods between January 2025 and June 2026. The purchases included explosives, chemicals used in rocket fuel, aircraft components and heavy-duty vehicles that can be adapted to launch missiles and drones.

The investigation, conducted with Israeli-American risk consultancy 240 Analytics, drew on thousands of Iranian banking records, government documents, corporate filings and shipping data.

The agencies operate under names beginning with MOD, referring to Iran's Ministry of Defense, followed by identifying numbers. They share an address with the country's Ministry of Defense and Armed Forces Logistics, yet Reuters found no evidence that any of the numbered agencies had been individually designated by Western governments.

The network has continued importing materials that can be used in weapons production even as U.S. and Israeli forces have targeted Iranian missile and drone facilities since the war began on February 28.

One agency, identified as MOD 346428, accounted for the $2.3 billion in imports over the 18-month period examined. Its purchases included 435 trucks, thousands of vehicles, machinery, electronics and materials that can be used in weapons manufacturing.

Shipping records showed that supplies entered Iran through several routes, including cargo ships crossing the Caspian Sea from Russia, trucks arriving through Central Asia and freight aircraft from China. Some shipments were also recorded as originating in Germany and other European Union countries.

The value of imports handled by the agency fell sharply after the war began, declining 47% to $54 million in March compared with February. However, purchases recovered to $77 million by May, according to the records examined by Reuters.

In June, Iran received a shipment of Russian detonators valued at $1.9 million. It was the fifth such delivery since January 2025, bringing the total recorded value of those purchases to $7.6 million.

Other shipments included titanium, nitrocellulose and chemicals used in industrial manufacturing, some of which can also serve as ingredients for explosives and rocket propellants. Many of these products have legitimate civilian applications, and Reuters said it could not independently verify the exact contents of every shipment or determine how all the materials were ultimately used.

Behind these purchases is a financial system that relies heavily on overseas intermediaries rather than conventional international payment channels.

The banking records also revealed substantial funds held by the agencies. At the end of 2024, just 36 of them had approximately $1.2 billion in foreign currency deposits, while the wider network held around $1.8 billion in local currency.

Some transactions were linked to Sahara Thunder, an Iranian company previously identified by the U.S. Treasury Department as a major commercial operation supporting the country's military and drone production activities.

The Treasury sanctioned Sahara Thunder in April 2024, saying it played a central role in developing, manufacturing and selling Iranian drones, including those supplied to Russia for its war in Ukraine.

The European Union also sanctioned Sahara Thunder in January 2026, identifying it as a front company for Iran's Ministry of Defense. The measures were part of broader restrictions targeting businesses and individuals involved in Iran's missile and drone programs.

The network's connections extend beyond weapons manufacturers. Reuters traced some transactions to Iranian foundations known as bonyads, which control major businesses and maintain close ties to the country's political and military leadership.

One such organization, Bonyad Mostazafan, was sanctioned by the U.S. Treasury in November 2020. Treasury described it as an extensive business conglomerate controlled by Iran's supreme leader, with interests in finance, construction, energy and other industries.

The U.S. Treasury Department defended the effectiveness of its sanctions, saying Washington had severed Iran's economic lifelines and continued working to prevent the country from obtaining funds and military supplies.

The import records also revealed shipments worth $27 million that were listed as originating in the United Arab Emirates after the war began. The latest recorded delivery from the UAE arrived by sea on June 27, during a temporary suspension of the American naval blockade. The blockade resumed in mid-July and remains in effect.