The U.S. on Tuesday imposed sanctions on an international network accused of smuggling Iranian oil to China, with proceeds allegedly funding the Iranian military and its regional proxies, including the Houthis.

The State Department identified the network as operating for the Iranian Armed Forces General Staff via a front company, Sepehr Energy. Revenue from the oil sales reportedly supports Iran's ballistic missile and drone programs, nuclear proliferation efforts, and its proxies' activities, such as Houthi attacks in the Red Sea.

The move aligns with the U.S.'s "maximum pressure" policy on Iran. Washington vowed to continue holding Tehran accountable for using illicit funds to back terrorism and attacks on U.S. allies.

This action followed previous U.S. pledges to disrupt the Houthis, against whom it has conducted airstrikes since mid-March. The Houthis were designated a Foreign Terrorist Organization earlier this year.