WASHINGTON – The U.S. on Monday unveiled an expansion of sanctions that it said would cut off Iran’s economic lifeline but stopped short of the most punishing measures, instead putting the world on notice to cease doing business with the Islamic Republic. Treasury Secretary Scott Bessent said other countries would need to sever business ties with Iran or risk being forced out of the dollar-based financial system. But he declined to identify the countries that would be targeted or reveal when those penalties would take effect, saying he would instead provide them time to comply with the new directive.
Why would I want to blow up the global financial system?” Bessent said at a news conference. The Treasury Department did announce new sanctions on 60 individuals, entities and vessels, but the list did not include any of the Chinese financial institutions suspected of facilitating Iran’s oil trade. Struggling to resolve an unpopular war that has pushed energy prices higher, Washington appears to be counting on further economic pressure even though Iran has spent decades under layers of U.S. and international sanctions that have battered its economy but have not deterred its leadership.
Though neither side has launched major strikes in weeks, the war shows little sign of reaching a diplomatic solution. In the meantime the U.S. is seeking new ways to end Iranian attacks on ships in the Gulf and, more recently via its allies, in the Red Sea. Before the announcement, Iran threatened both a possible military response and further reduction in oil exports from the Gulf in response to any U.S. economic measures.
Afterward, Iranian Economy Minister Ali Madanizadeh said, “We are fully prepared for the U.S. sanctions.”
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