US hits Iran with new sanctions, hopes for prisoner dialogue

The Trump administration on Wednesday hit Iran with new sanctions that target several transportation firms as it continues its maximum pressure campaign" against the Islamic Republic over its nuclear and ballistic missile programs.

The sanctions target Iran's state shipping line and a China-based company that has been involved in delivering missile parts to Iran.

They also add a layer of new penalties to a previously sanctioned Iranian airline, Mahan Air, which is accused of sending weapons to Iranian proxies in Lebanon and Yemen, and three of its sales agents.

The moves were announced by the Treasury and the State Department and will subject foreign firms and governments that do business with the targeted entities to sanctions themselves, including a freeze on any assets they may have in US jurisdictions.

"Today's designations put the world on notice that those who engage in illicit transactions with these companies will risk exposure and sanctions themselves," Secretary of State Mike Pompeo said.

Pompeo announced the sanctions even as he expressed hope that a weekend prisoner swap with Iran could lead to a dialogue between Washington and Tehran over prisoners. He called Saturday's release of Princeton graduate student Xiyue Wang in exchange for an Iranian jailed in the US a happier note that could yield progress.

"I do hope the exchange that took place will lead to a broader discussion on consular affairs. We are working to use this as an opportunity to continue that effort," he said. "I hope that it portends well. We have had some indication that that may be the case, but I don't want to be overstate that, I don't want to give false optimism about that pathway."