The U.S. President’s administration has announced an expansion of secondary sanctions that can be imposed on entities and countries with business ties to Iran, intensifying economic pressure on Tehran as the conflict approaches its six-month mark. Treasury Secretary Scott Bessent declared the move as an “economic D-Day,” warning countries to cut off business relations with Iran or face exclusion from the dollar-based financial system.
The U.S. Treasury Department revealed its strategy to disrupt Iran’s global financial connections, aiming to isolate the regime economically. It disclosed that it has identified the networks and channels used by Iran for oil smuggling and sanctions evasion, intending to collaborate with U.S. allies to target any sources of Iran’s illicit income.
Sanctions have been imposed on various sectors supporting Iran’s economy, including digital assets, technology, gold, aviation, and shipping, along with sanctions on multiple entities, individuals, and vessels. Despite China being a significant purchaser of Iranian oil, efforts to restrict Chinese acquisitions have not yet involved major Chinese banks facilitating the trade.
Iran issued warnings of potential military retaliation and further reductions in Gulf oil exports in response to U.S. economic actions. Iranian officials expressed readiness for U.S. sanctions, asserting their preparedness to counter economic threats. Iran’s Revolutionary Guard Corps spokesperson vowed severe consequences for U.S. interests and energy supply routes if Iran’s infrastructure faces jeopardy.
The ongoing conflict between the U.S. and Iran has elevated global energy prices, with diplomatic resolutions stalled and energy shipments through the Strait of Hormuz obstructed. President Trump’s popularity has declined, with only 33% approval in recent polls. He justifies the economic measures as necessary to prevent Iran from acquiring nuclear weapons.
Decades-long U.S. sanctions targeting Iran have focused on limiting oil revenues, aviation activities, cryptocurrency transactions, weapons procurement, and funding for IRGC-affiliated businesses. Although these sanctions restrict designated entities from the dollar-based financial system, Iran has adeptly established new entities to circumvent these restrictions.