2 weeks ago
Trump Vows to Hit Iran Hard Economically; Options Weighed
America and Iran are in a war that started in February.
America wants to stop Iran from getting money so it cannot keep fighting.
One way to do that is with sanctions, which are rules that stop countries and companies from trading with Iran.
President Trump said on Friday that America will make these rules even stronger.
America has already punished more than 1,000 people, ships and planes connected to Iran, and blocked about $500 billion of digital money called cryptocurrency that Iran was using.
China buys most of the oil Iran sends by ship, so America may punish Chinese companies and banks that help Iran sell oil.
America could also put extra taxes on goods from countries that do business with Iran, though its courts struck down the old legal reason for those taxes.
Some experts think Iran will simply create new companies to get around the rules, like a game of whack-a-mole, so these tools may not change Iran's behavior.
President Donald Trump on Friday vowed to hit Iran hard economically, a day after Treasury Secretary Scott Bessent said Washington would impose measures on Tehran that have 'never been seen' as soon as next week.
The U.S. Treasury's OFAC has imposed sanctions on more than 1,000 people, vessels and aircraft since Trump began his second term, including freezing an estimated $500 billion in Iran-linked cryptocurrency.
China buys more than 80% of Iran's shipped oil, according to 2025 data from analytics firm Kpler, and U.S. options include sanctions on Chinese 'teapot' refiners and two larger Chinese banks that Treasury has warned.
Other options floated include a land blockade requiring help from Iran's neighbors, continued 'whack-a-mole' targeting of sanctions evaders, and secondary tariffs authorized in a Senate-passed Russia sanctions bill that still needs House approval.
Since the Iran war began in February, Washington has levied additional maritime, energy and financial sanctions and started a naval blockade via the Strait of Hormuz.
- Who
- U.S. President Donald Trump, Treasury Secretary Scott Bessent and the Treasury Department's Office of Foreign Assets Control (OFAC) are driving the new economic pressure; China is Iran's main oil buyer.
- What
- The U.S. is preparing additional sanctions and pressure options against Iran, including sanctions on Chinese refiners and banks, continued targeting of sanctions evaders, a possible land blockade and secondary tariffs.
- Where
- Washington; the measures target Iran, China and the Gulf, and the U.S. has blockaded shipping via the Strait of Hormuz.
- When
- Trump's vow came on Friday, August 16, and Bessent said new measures would come 'as soon as next week'; the Iran war began in February.
- Why
- To increase economic pressure on Iran and deny it revenue for its war effort.
Advocates of maximum pressure
Critics urging caution
Effectiveness of sanctions
Advocates of maximum pressure
The administration is prepared to impose measures on Tehran that have 'never been seen' to deny it revenue for its war effort.
Critics urging caution
Experts such as Brett Erickson say the 'whack-a-mole' approach has not altered Iran's behavior because Tehran simply creates new entities to replace those sanctioned.
Sanctioning major Chinese banks
Advocates of maximum pressure
Designating the two larger Chinese banks warned by the Treasury could have a chilling effect on bigger financial institutions.
Critics urging caution
It could trigger retaliatory actions by Beijing, such as curtailing exports of critical minerals essential to advanced technology production.
Land blockade of Iran
Advocates of maximum pressure
Some U.S. and Israeli officials have floated a land blockade to halt Iran's imports of food, energy and textiles.
Critics urging caution
Experts say a land blockade would be difficult to execute and might not result in protests or internal pressure on the Iranian people.
Key facts
- Announcement date
- Friday, August 16
- New measures timeline
- As soon as next week
- Sanctions imposed since Trump's second term
- More than 1,000 people, vessels and aircraft
- Frozen Iran-linked cryptocurrency
- Estimated $500 billion
- Iran oil bought by China
- More than 80% of shipped oil (2025 Kpler data)
- Shipping blockade
- U.S. naval blockade via the Strait of Hormuz
- Senate legislation
- Russia sanctions bill with new Iran sanctions and tariff powers, pending House passage
Quotes
Treasury Secretary Scott Bessent
United States Treasury Secretary
“Washington would impose measures on Tehran that have "never been seen" as soon as next week.”
NDTV
Brett Erickson
Managing principal, Obsidian Risk Advisors
“The United States could continue targeting Iranian individuals and entities, as well as others in China and the Gulf, that are helping Tehran evade sanctions to collect revenues for its war effort, but such measures amount to a "whack‑a‑mole" approach that has not altered Iran's behavior.”
NDTV
Sources
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