The Trump administration announced an expansion of secondary sanctions against entities and countries maintaining business ties with Iran, escalating economic pressure on Tehran as the conflict approaches six months. Treasury Secretary Scott Bessent introduced an “economic D-Day” strategy at a press conference to caution countries to sever connections with Iran or face exclusion from the dollar-based financial system for key companies and entities.
The U.S. Treasury Department disclosed efforts to disrupt Iran’s global financial networks, identifying channels used for oil smuggling and sanctions evasion. Targeting sectors like digital assets, technology, gold, aviation, and shipping that support Iran’s economy, the Treasury imposed sanctions on nearly 60 entities, individuals, and vessels. China, a major buyer of Iranian oil, faces increased scrutiny, although larger Chinese banks facilitating trade have not been designated yet.
Iran issued warnings of potential military responses and further oil export reductions from the Gulf in retaliation to U.S. economic actions. Iranian Finance Minister Ali Madanizadeh asserted readiness for U.S. sanctions, emphasizing Iran’s defensive capabilities and readiness for any attacks. Iran’s Islamic Revolutionary Guard Corps spokesperson, Brig-Gen. Hossein Mohebbi, threatened severe consequences for U.S. interests and energy chokepoints if Iran’s infrastructure is endangered.
As the U.S.-Iran conflict progresses, global energy prices have surged, with diplomatic resolutions stalled and the Strait of Hormuz blockades persisting. President Trump’s approval ratings have declined, with only 33% approval in the latest Reuters/Ipsos poll. Trump defends the economic costs as necessary to prevent Iran from acquiring nuclear weapons. U.S. sanctions against Iran have long aimed to limit oil revenues, target aviation and cryptocurrency sectors, restrict military procurements, and cut funding to IRGC-controlled enterprises, a significant part of Iran’s economy.
Despite sanctions barring designated entities from the financial system, Iran has evaded restrictions by swiftly establishing new front companies, entities, and vessel registrations.