1 week ago
US Expands Iran Sanctions, Threatening Partners With Dollar Cutoff
The United States announced a tougher campaign of economic penalties against Iran.
The campaign can also affect companies and countries that continue trading with Iran.
Treasury Secretary Scott Bessent said the goal is to cut off Iran’s ways of earning and moving money.
The United States identified digital assets, technology, gold, aviation and shipping as important sectors.
It also sanctioned nearly 60 people, companies and vessels connected to Iran.
Banks or other organizations accused of helping Iran launder money could lose access to the US dollar system.
China, Turkey and the United Arab Emirates have important trade links with Iran and may face more scrutiny.
Reports differed over whether the United Arab Emirates had suspended dealings with Iran or remained a partner under scrutiny.
Iran said it was prepared to manage the pressure, while experts warned that ordinary Iranians could face more economic pain.
The Trump administration expanded secondary sanctions against countries and companies maintaining business ties with Iran.
Treasury Secretary Scott Bessent called the campaign an “economic onslaught” and “economic asphyxiation” aimed at severing Iran’s financial lifelines.
The Treasury identified digital assets, technology, gold, aviation and shipping as Iranian economic sectors facing increased scrutiny.
The United States sanctioned nearly 60 entities, individuals and vessels linked to Iranian oil revenue, weapons procurement and cyber operations.
Washington warned facilitators could lose access to the US dollar system, while Iran’s partners were given a short period to change their behavior.
- Who
- The Trump administration, led in the announcement by Treasury Secretary Scott Bessent, and countries, companies and financial institutions doing business with Iran.
- What
- The United States expanded secondary sanctions and warned Iran’s financial facilitators that they could lose access to the US dollar-based financial system.
- Where
- The measures target Iran’s global financial and commercial networks, including activity involving the Strait of Hormuz.
- When
- Monday, August 24, as the war involving Iran approached its six-month mark.
- Why
- Washington says it wants to sever Iran’s oil revenue and other economic lifelines, while President Donald Trump says the costs are necessary to prevent Iran from obtaining a nuclear weapon.
US administration’s rationale
Iranian and economic concerns
Purpose of the campaign
US administration’s rationale
Washington says severing Iran’s financial connections, oil revenue and other economic lifelines will isolate Tehran and pressure it over its conduct and nuclear ambitions.
Iranian and economic concerns
Iran’s economy minister said Tehran was prepared to manage the measures, while an International Crisis Group analyst said Iran had faced similar pressure before and believed it could absorb substantial economic pain.
Pressure on trading partners
US administration’s rationale
Bessent said countries and companies engaging economically with Iran could face secondary sanctions and that no entity was above the reach of US sanctions.
Iranian and economic concerns
The campaign creates uncertainty for Iran’s international partners because officials did not identify all possible targets or penalty dates; reports also differed over whether the UAE had suspended dealings with Iran or remained under scrutiny.
Economic versus military pressure
US administration’s rationale
US officials said economic pressure currently hurts Iran most and sought to increase the cost of its financial and commercial ties.
Iranian and economic concerns
Defense Secretary Pete Hegseth said military strikes around Iran or the Strait of Hormuz remained possible, while reports warned that sanctions and continued disruption could increase economic pain for ordinary Iranians and energy markets.
Key facts
- Announcing official
- US Treasury Secretary Scott Bessent
- Sanctions announced
- Nearly 60 entities, individuals and vessels
- Targeted sectors
- Digital assets, technology, gold, aviation and shipping
- Main financial threat
- Removal from the US dollar-based financial system
- Major Iranian oil buyer
- China
- Other trading partners mentioned
- Turkey and the United Arab Emirates
- Compliance window
- A short “cure period” for countries and entities to change their behavior
- Energy route
- The Strait of Hormuz, where shipping remains blocked or restricted according to the reports
Quotes
Scott Bessent
US Treasury Secretary
“We are launching an economic onslaught against Iran’s financial connections around the globe. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone.”
livemint.com
livemint.com
NDTV
theprint.in
“Economic pressure, we know, hurts them the most right now. But by no means are we foreclosing using kinetic strikes anywhere in the Strait of Hormuz or around Iran.”
NDTV
Ali Madanizadeh
Iranian economy minister responding to the new US sanctions threat
“We've been waiting for these plans for a long time, and the government is and was ready and has a two-year plan to manage these events.”
NDTV
Sources
New US sanctions against Iran: Bessent warns countries — Cut Iran ties or face the ‘full reach of American power’
Bessent on Iran sanctions: 10 key points from Trump administration’s ‘economic asphyxiation’ plan
"Economic Asphyxiation": US Announces New Sanctions Campaign Against Iran
US announces expansion of sanctions in ‘economic onslaught’ on Iran
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