The US has stepped up pressure on Iran by announcing new sanctions as President Donald Trump says Iran is “collapsing.” The move comes as the two countries remain stuck without a wider peace deal, while separate talks over the Strait of Hormuz continue. Treasury Secretary Scott Bessent called the sanctions the biggest financial attack ever against an enemy.
Bessent said Monday that the US will impose tough sanctions on countries and entities that continue to do business with Iran. The aim is to put more pressure on Iran’s government and force it to change course without immediately launching another military campaign. The plan has been described as an “economic D-Day”, as reported by Axios.
US Iran sanctions
The new measures will expand the use of secondary sanctions. These sanctions can target countries, companies and other entities that do business with Iran. US officials expect these sanctions to be the main tool against Iran at least until after the US midterm elections. After the elections, another US military campaign against Iran could again become an option, according to US officials.
Deep Dive
What are the new sanctions the US has imposed on Iran and their intended effects?
Why did Iran threaten to stop all oil exports in response to US sanctions?
How do secondary sanctions impact countries that trade with Iran?
Bessent said there should be no confusion about the US position. He warned that anyone involved in economic activity with the Iranian government could face the full power of US sanctions. “An economic engagement of any kind with this murderous regime” would expose those involved to US action, Bessent said at a news conference, according to Axios.
{{/usCountry}}Bessent said there should be no confusion about the US position. He warned that anyone involved in economic activity with the Iranian government could face the full power of US sanctions. “An economic engagement of any kind with this murderous regime” would expose those involved to US action, Bessent said at a news conference, according to Axios.
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Bessent did not announce a specific deadline for countries or companies to stop doing business with Iran. He said the US would not set a timeline but warned that Washington does not have “infinite patience.” He also said “no one is above this” when asked whether China would be included. Bessent described the campaign as “economic asphyxiation” of the Iranian government and warned countries not to test US resolve.
Iran trade pressure
The Trump administration could also face pressure to confront countries that continue trading with Iran. These include China, Russia, India, Pakistan, Qatar and Turkey, among others.
The war has pushed Iran’s already troubled economy into an even deeper crisis. Iran’s currency, the rial, fell to a new low on Monday. The rial dropped to around 2 million rials for $1. The Associated Press reported this.
The US naval blockade has stopped Iran from exporting most of its oil. Oil is a major source of money for Iran and is often described as the lifeblood of its economy. Losing much of its oil export ability has therefore put even more pressure on the country’s finances.
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Iran economy crisis
At the same time, some senior Iranian officials have admitted that the country faces a serious risk of economic collapse. Iranian President Masoud Pezeshkian has acknowledged the shortages facing the country. He has said Iran should end the war now while it still has a position of strength, according to an Al Jazeera report.
The US is now trying to use economic pressure as a major weapon against Iran. Washington wants to cut Iran off from money and make it harder for the government to fund itself. The success of the plan will depend heavily on whether other countries follow the US sanctions.