Washington: US Treasury Secretary Scott Bessent announced on Monday an expanded sanction strategy targeting Iran's economy, emphasizing Washington's intent on "economic asphyxiation" of the Iranian regime. This development underscores the United States' commitment to intensifying economic pressure on Tehran, with a warning of severe repercussions for countries that do not support the campaign.
According to France24.com, the announcement comes amid a protracted conflict with Iran that remains at a stalemate, with peace talks stalled and Iranian restrictions on traffic through the strategic Strait of Hormuz. Bessent, who referred to the plan as an "economic D-Day" against Iran, refrained from specifying countries beyond Iran in his announcement and did not provide a timeline for the measures.
Bessent stated, "Our objective globally is to cut off every economic support channel that sustains this regime until Tehran finds itself isolated." He further mentioned that non-participating countries would also face isolation and highlighted that President Donald Trump is actively reaching out to global leaders, urging them to cease interactions with Iran.
The US Treasury revealed that the extended secondary sanctions will focus on Iran's digital assets, technology, gold, aviation, and shipping industries. Sixty individuals, companies, and vessels allegedly supporting Iran's oil revenue, weapons acquisition, and cyber activities have been targeted. These sanctions impact entities worldwide, including in the United Arab Emirates, Hong Kong, China, Singapore, and Europe.
Bessent emphasized that any entity facilitating money laundering for Iran would be excluded from the US dollar financial system. Despite these threats, Iran has downplayed the impact of additional sanctions. Iran's economy minister, Ali Madanizadeh, predicted another economic setback for Washington, asserting that the government is prepared with a two-year plan to address these challenges.
Deputy Foreign Minister Kazem Gharibabadi described the US threats as an acknowledgment of military failure, questioning the need for such extensive financial measures if Washington had achieved its objectives. He queried whether this was a victory or an admission of defeat for America.
Iran has endured decades of severe international sanctions, continuing to export oil, mainly to China, through sophisticated financial networks. Bessent noted that Chinese banks could also be targeted, stating that no entity is beyond the reach of US sanctions. The US naval blockade has significantly reduced Iran's oil exports via the Strait of Hormuz, dropping from two million barrels daily pre-war to 0.4 million by mid-August, as per maritime tracker Kpler.
The ongoing conflict is likely to exacerbate economic hardships for ordinary Iranians, who have already faced rampant inflation and anti-government protests in recent months. The US also announced on Monday the suspension of sanctions exemptions related to payments involving the US educational system and Iran.
In related developments, Pakistani army chief Asim Munir met with Iranian President Masoud Pezeshkian and other key Iranian officials on Monday. Munir's visit follows a conversation between President Trump and Munir, highlighting Pakistan's role as a mediator in the conflict. Oman's foreign minister is also expected in Iran, aiming for a deal on regulating passage through Hormuz, signaling ongoing diplomatic efforts to resolve the situation.