The U.S. President Donald Trump’s administration revealed an expansion of secondary sanctions on entities and countries with business ties to Iran, escalating economic pressure on Tehran as the conflict approaches six months. Treasury Secretary Scott Bessent, at a press conference, introduced an “economic D-Day” warning countries to sever connections with Iran or face exclusion from the dollar-based financial system. Bessent stated, “We are launching an economic assault on Iran’s global financial ties. Our goal is to cut off all economic support to this oppressive regime until Tehran stands isolated.”
The U.S. Treasury Department identified networks and channels Iran uses for oil smuggling and sanctions evasion, working with U.S. allies to target Iran’s sources of “illicit revenue.” Sanctions have been imposed on five sectors – digital assets, technology, gold, aviation, and shipping – that Iran exploits to bolster its economy. Additionally, sanctions have been placed on nearly 60 entities, individuals, and vessels.
China has been a major buyer of Iranian oil, and efforts to restrict Chinese purchases have intensified, stopping short of penalizing larger Chinese banks facilitating trade. Iran threatened military retaliation and possible further reduction in Gulf oil exports in response to U.S. economic actions.
Iranian Finance and Economic Affairs Minister Ali Madanizadeh affirmed readiness for U.S. sanctions, stating, “We are fully prepared.” Brig-Gen. Hossein Mohebbi of Iran’s Islamic Revolutionary Guard Corps (IRGC) warned of severe retaliation against U.S. interests and energy chokepoints if Iran’s infrastructure is endangered.
The conflict between the U.S. and Iran has lasted nearly six months, leading to global energy price hikes. Despite reduced combat, diplomatic resolutions have stalled, and energy prices remain high due to blocked shipments through the Strait of Hormuz. Trump’s approval rating has declined, with only 33% of Americans approving his performance in the latest Reuters/Ipsos poll. The sanctions against Iran have been ongoing for years, targeting various sectors to prevent Iran from acquiring nuclear weapons.
Sanctions restrict designated entities from the dollar-based financial system, but Iran has evaded them by establishing new front companies and vessels promptly.