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.
“We are giving everyone the opportunity to remedy bad behaviour. Why would I want to blow up the global financial system?” Bessent said at a news conference.
He added that countries not joining US sanctions would “share in the isolation” of Iran, and noted that US President Donald Trump was making phone calls to world leaders with requests to stop interactions with Tehran.
The US Treasury Department said expanded secondary sanctions would target Iran’s digital assets, technology, gold, aviation and shipping sectors.
It also issued new sanctions against 60 individuals, companies and vessels that allegedly aid Iran in oil revenue generation, weapons procurement and cyber operations.
The sanctions hit entities around the world, including in Hong Kong, the Chinese Mainland, Singapore, the United Arab Emirates, and in Europe.
Bessent vowed that any entity “that facilitates money laundering on behalf of Iran will be removed from the US dollar system.”
The announcement comes almost six months into a war on Iran that has ground to a stalemate, with stalled peace talks and Tehran blocking most traffic through the crucial Strait of Hormuz.
Iran had been dismissive of the threat of additional sanctions, and on Monday its economy minister predicted “another defeat” for Washington.
“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,” said Ali Madanizadeh.
“Naturally, the enemies intend to launch an economic terrorist attack on us, but we also have our own tools and know how to play the game. Our defence is no longer so defensive; the enemies should wait for an attack,” Madanizadeh told state television.
He said neither China nor Russia had “accepted” the US measures, and predicted other countries would resist them.
Bessent previously urged cooperation from China, the biggest buyer of Iranian oil for several years, although the US blockade of Iran’s ports, renewed in mid-July, has already cut Iranian oil flows to China.
Asked on Monday if Chinese banks would be targeted by the new sanctions, Bessent said “We want to make clear here today that no one is above the reach of US sanctions.”
The Foreign Ministry said sanctions and pressure tactics do not help and Beijing would do what was necessary to protect China’s interests.
Ali Vaez of the International Crisis Group said Washington was seeking to impose maximum economic pressure through various levers, but that Iran “has faced all of these before.”
“While there is little doubt in Washington’s ability to impose substantial pain, Tehran believes that it has a high threshold for absorbing it, as well as the potential to respond to financial pressure with military counter-pressure,” he said.
The US naval blockade of Iran has seen its oil exports via the Strait of Hormuz fall from two million barrels a day pre-war to just 0.4 million by mid-August, according to maritime tracker Kpler.
Speaking to reporters on Monday, US Defence Secretary Pete Hegseth said that the pivot to applying economic pressure did not mean that military strikes were off the table.
“Economic pressure, we know, hurts them the most right now,” he said. “But by no means are we foreclosing using kinetic strikes anywhere in the Strait of Hormuz or around Iran.”
Brigadier General Hossein Mohebbi, a spokesperson for Iran’s Islamic Revolutionary Guard Corps, vowed heavy blows to US vital interests and energy chokepoints if Iran’s infrastructure is threatened, Press TV reported. (Agencies)
