Trump administration expands U.S. sanctions on Iran targeting countries with business ties to Tehran

Trump administration expands U.S. sanctions on Iran targeting countries with business ties to Tehran

Treasury says it has mapped the networks Iran uses to smuggle oil and evade sanctions

U.S. President Donald Trump's administration on Monday announced an expansion of secondary sanctions it can impose on ‌entities and countries that maintain business ties with Iran, significantly ratcheting up economic pressure on Tehran as the war nears its six-month mark.

At a press conference, Treasury Secretary Scott Bessent unveiled what he described as an "economic D-Day" aimed at giving countries a final warning to sever business ​ties with Iran or risk having key companies and entities cut off from the dollar-based financial system.

"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," Bessent said.

The ⁠U.S. Treasury Department said it has mapped the networks, facilitators and ‌financial channels Iran uses to smuggle oil and evade sanctions, and that Washington would work with U.S. partners to target any source of Iran's "illicit revenue."

The department said it has issued determinations against five sectors — digital assets, technology, gold, aviation and shipping — that the ⁠Iranian government uses to prop up its economy. The Treasury has also imposed sanctions on nearly 60 entities, individuals and vessels.

China has for several years been the biggest buyer of Iranian oil. Washington has ‌intensified efforts to clamp down on Chinese purchases but has so far stopped short of designating larger Chinese banks that may be facilitating the trade.

$30K US dead or alive: Iran's new bounty on U.S. soldiers | About That

'Wait for an attack,' Iran warns

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 Finance and Economic Affairs Minister Ali Madanizadeh said, "We are fully prepared for the U.S. sanctions."

"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.

Brig-Gen. Hossein ⁠Mohebbi, a spokesperson for Iran's Islamic Revolutionary Guard Corps (IRGC), vowed heavy blows to U.S. vital interests and energy chokepoints if Iran's infrastructure is threatened, Press TV reported.

Iran rejects Trump's threat of 'economic warfare' on 'unprecedented scale'

The war between the U.S. and Iran is nearing the six-month mark and has pushed energy prices higher worldwide. While heavy fighting has subsided, ​diplomatic efforts to end the conflict have stalled, and oil and raw-material shipments through the Strait of Hormuz remain blocked, keeping energy ⁠prices elevated.

Trump's approval rating has fallen to a low point, with just 33 per cent of Americans in the ⁠latest Reuters/Ipsos poll approving of his performance. He says the economic costs are necessary to ensure Iran ⁠does ⁠not obtain a nuclear weapon.

The U.S. ​has maintained sanctions against Iran for decades. Most have been aimed at curtailing the country's oil revenues, ​targeting its aviation sector and cryptocurrency activity, restricting its procurement of weapons ⁠components and other military hardware, and cutting off funding for business enterprises controlled by the IRGC, a dominant force in the Iranian economy.

The sanctions bar designated entities from the dollar-based financial system, but Iran has been successful in quickly standing up new front companies, entities and vessel registrations to evade them.