Iran-backed militias funnel money to IRGC amid economic crisis, CENTCOM commander Cooper says

Cooper said the financial pressure had become severe enough that Iran-aligned militias were reportedly withholding payments from their own fighters to funnel money back to the IRGC.

Iran-backed militias, including Hezbollah, Hamas, and militias in Iraq, have been redirecting money to Iran's Islamic Revolutionary Guard Corps (IRGC) as Tehran faces mounting economic pressure after nine months of war, Axios reported Friday, citing US Central Command (CENTCOM) chief Adm. Brad Cooper.

According to reporting from Axios, Cooper said the US naval blockade has cost Iran an estimated $25 billion in lost oil revenue. He added that CENTCOM and the US Treasury Department had also frozen $350 million in Iranian cryptocurrency assets in recent weeks.

Iran-backed militias withholding payments to their own troops to funnel money to IRGC

Cooper said the financial pressure had become severe enough that Iran-aligned militias were reportedly withholding payments from their own fighters to funnel money back to the IRGC, which was also struggling to pay its troops.

“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 said in a video statement, according to Axios.

Cooper also attributed increased Iranian attacks on shipping in the Strait of Hormuz to what he described as desperation within the IRGC. He said the waterway remained open, with 400 ships and 100 million barrels of oil passing through it over the previous week, Axios reported.

CENTCOM has also mostly paused strikes on Iranian military positions threatening the Strait of Hormuz in recent weeks, according to Axios.

The Trump administration has continued attempts to place economic pressure on Iran to secure an agreement. Axios reported that the White House and Qatari mediators were awaiting Iran's response to a US counterproposal aimed at ending the war.

A US official cited by Axios said the White House ordered the pause to avoid escalating the war before the US midterm elections, as US President Donald Trump’s approval rating has dipped to 38%, according to NBC News polling.

Axios also reported that US officials believe Iran is increasing attacks on ships transiting the Hormuz in an effort to raise oil prices and increase pressure on Trump ahead of the midterm elections.