US Treasury unveils secondary sanctions campaign targeting Iran
The United States treasury department has unveiled a sweeping secondary sanctions campaign targeting Iran’s digital assets, technology, gold, aviation, and shipping sectors, aiming to enforce what Treasury Secretary Scott Bessent termed the “economic asphyxiation” of Tehran.
Treasury Secretary Scott Bessent Announces Economic Asphyxiation Plan
United States Treasury Secretary Scott Bessent laid out plans for the economic campaign on Tuesday, warning that countries refusing to join the sanctions will share in Iran’s isolation. Bessent previously declared an “economic D-Day” on Iran as the bilateral war approaches its six-month mark. The announcement named no specific countries beyond Iran and established no timelines.
“Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent told journalists, according to SBS News. He added that any entity facilitating money laundering on behalf of Iran will be removed from the United States dollar system.
The updated Treasury Department measures target 60 individuals, companies, and vessels accused of aiding Iran in oil revenue generation, weapons procurement, and cyber operations. Affected entities span multiple jurisdictions, including the United Arab Emirates, Hong Kong, China, Singapore, and Europe. The new directives also suspend sanctions exemptions for payments to and from Iran related to the United States educational system.
Strait of Hormuz Blockade Drives Oil Exports Down
The sanctions arrive as the war between the United States and Iran remains deadlocked, accompanied by stalled peace talks and Iranian restrictions blocking most traffic through the strategic Strait of Hormuz. A naval blockade has driven Iranian oil exports down from two million barrels per day prior to the war to just 0.4 million barrels per day by mid-August, according to maritime tracker Kpler.
Before the conflict, Iran exported millions of barrels of oil primarily to China and relied on complex international financial networks to evade existing trade restrictions. Asked on Tuesday whether Chinese banks would face direct penalties under the expanded authorities, Bessent stated that no one is above the reach of United States sanctions.
Ordinary citizens in Tehran face mounting financial hardship amid rampant inflation that previously triggered massive anti-government protests in December and January. “I don’t think people can really take this much longer,” Sarah Hassanbeigi, a 32-year-old pharmacist in Tehran, told SBS News.
Iranian Officials Dismiss New Economic Measures
Iranian leadership has publicly dismissed the threat of additional financial penalties. Ali Madanizadeh, Iran’s economy minister, predicted another defeat for the United States on the economic front, noting that the government had prepared a two-year plan to manage the disruption.
In a social media post preceding the Treasury Department announcement, Iran’s deputy foreign minister Kazem Gharibabadi characterized the threats as an admission of military defeat. Gharibabadi questioned why the mobilization of all United States institutions would be necessary if Washington had already achieved its military objectives.
Meanwhile, diplomatic channels remain active as regional actors attempt to mediate the stalemate. Pakistan’s army chief, Asim Munir, visited Iran on Monday to meet with the Iranian president, chief negotiator, and the head of the highest national security body. The visit followed a telephone call between United States President Donald Trump and Munir, according to a United States source cited by Agence France-Presse. Oman’s foreign minister was scheduled to arrive in Iran on Tuesday to discuss regulations governing passage through the Strait of Hormuz.