The Trump administration announced an expansion of secondary sanctions against entities and countries maintaining business ties with Iran, increasing economic pressure on Tehran as the conflict approaches its six-month mark. Treasury Secretary Scott Bessent introduced what he termed an “economic D-Day” during a press conference, warning countries to sever business connections with Iran or risk having key companies and entities excluded from the dollar-based financial system. The U.S. Treasury Department revealed plans to disrupt Iran’s global financial connections, aiming to cut off every economic lifeline supporting the regime until Tehran is isolated.
Washington has identified the networks and channels Iran uses to smuggle oil and evade sanctions, with the Treasury targeting sources of Iran’s illicit revenue, including the digital assets, technology, gold, aviation, and shipping sectors. Sanctions have been imposed on nearly 60 entities, individuals, and vessels, with particular focus on China, the largest buyer of Iranian oil. Efforts to restrict Chinese purchases have intensified, but larger Chinese banks facilitating the trade have not yet been designated.
Before the announcement, Iran warned of potential military retaliation and further reduction of Gulf oil exports in response to U.S. economic measures. Iranian Finance and Economic Affairs Minister Ali Madanizadeh stated readiness for U.S. sanctions, emphasizing Iran’s preparedness to counter economic threats. Brig-Gen. Hossein Mohebbi of Iran’s Islamic Revolutionary Guard Corps (IRGC) warned of severe consequences for U.S. vital interests and energy chokepoints if Iran’s infrastructure is endangered.
As the conflict between the U.S. and Iran persists, energy prices have risen globally, with diplomatic efforts to resolve the crisis stalled. Trump’s approval rating has declined, with only 33% of Americans approving of his performance according to the latest Reuters/Ipsos poll. The U.S. has maintained sanctions against Iran for years, targeting oil revenues, aviation, cryptocurrency, weapons procurement, and IRGC-associated businesses. Despite sanctions restricting access to the dollar-based financial system, Iran has evaded them by establishing new front companies and vessel registrations swiftly.
