Washington: US Treasury Secretary Scott Bessent on Monday unveiled plans aimed at the "economic asphyxiation" of Iran, intensifying Washington's secondary sanctions and warning of severe consequences for countries that do not align with the campaign.
According to France24.com, the announcement occurs nearly six months into a conflict with Iran that has reached a stalemate, with peace talks at a standstill and Tehran obstructing most traffic through the pivotal Strait of Hormuz. Bessent previously described the United States' actions as an "economic D-Day" on Iran, though he did not specify any countries beyond Iran or provide timelines for the sanctions.
"Our global objective is to sever every economic lifeline sustaining this tyrannical regime until Tehran stands isolated," Bessent told journalists, emphasizing the US's commitment to holding all accountable in this effort. He also mentioned that countries not participating in US sanctions would "share in the isolation" of Iran, with President Donald Trump personally reaching out to world leaders urging them to cease interactions with Tehran.
The Treasury Department announced expanded secondary sanctions targeting Iran's digital assets, technology, gold, aviation, and shipping sectors. Additionally, new sanctions were imposed on 60 individuals, companies, and vessels accused of aiding Iran in oil revenue generation, weapons procurement, and cyber operations. These sanctions affect entities worldwide, including in the United Arab Emirates, Hong Kong, China, Singapore, and Europe.
Bessent pledged to remove any entity "facilitating money laundering on behalf of Iran" from the US dollar system. Iran, however, dismissed the threat of additional sanctions, with its economy minister predicting "another defeat" for Washington on the economic front. Ali Madanizadeh stated that the Iranian government had been preparing for such plans and had devised a two-year strategy to manage these events.
Before the announcement, Deputy Foreign Minister Kazem Gharibabadi interpreted the latest US threats as an acknowledgment of military defeat, questioning the necessity of a "financial invasion" if Washington had achieved its goals.
Iran has historically weathered decades of severe international sanctions, managing to continue oil exports, primarily to China, and evading sanctions through complex international financial networks. When questioned about the potential targeting of Chinese banks, Bessent asserted that "no one is above the reach of US sanctions." The US naval blockade has reduced Iran's oil exports through the Strait of Hormuz from two million barrels a day pre-war to just 0.4 million by mid-August, as reported by maritime tracker Kpler.
For ordinary Iranians, the escalating tensions promise further economic hardship following years of rampant inflation, which triggered significant anti-government protests in December and January. Sarah Hassanbeigi, a pharmacist in Tehran, expressed concern, stating, "I don't think people can really take this much longer."
The US's announcement also included the suspension of sanctions exemptions for payments to and from Iran related to the US educational system.
Last week, Iranian President Masoud Pezeshkian, regarded as a relative moderate, suggested that Tehran should "bring the war to an end now as we are in a position of power," following Supreme Leader Mojtaba Khamenei's appointment of hardliners to critical security positions.
On Monday, Pakistan's army chief Asim Munir, a key mediator in the conflict, visited Iran and met separately with Iran's president, chief negotiator, and the head of its national security body. These meetings occurred after a conversation between Trump and Munir, as disclosed by a US source familiar with the matter. Islamabad has been a leading mediator in talks that previously secured an April ceasefire, which eventually fell apart. As a major trading partner of Iran, Pakistan could potentially face the threat of new sanctions.
Oman's foreign minister is scheduled to visit Iran on Tuesday, as Muscat and Tehran work towards an agreement on regulating passage through Hormuz.