WASHINGTON—The Biden administration accused the Russian government of helping Iran’s blacklisted military unit sell hundreds of millions of dollars of oil around the globe, as Washington levied a barrage of sanctions against companies and individuals allegedly involved in the smuggling operation.

The action on Wednesday marks a double-barreled financial and diplomatic salvo against the U.S.’s top two foes, linking Russia’s state oil company to the Islamic Revolutionary Guard Corps’s Quds Force, the Iranian military unit designated a terrorist group by the U.S. and other Western nations.

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