The United States announced an expanded secondary-sanctions campaign against Iran on Monday, warning foreign governments, banks and companies to reduce business with Tehran or risk losing access to the dollar-based financial system. Treasury Secretary Scott Bessent said the initiative seeks to cut every revenue channel sustaining Iran, although he did not identify which countries would face penalties or specify when enforcement would begin.
The Treasury Department said the campaign covers networks linked to oil sales and sanctions evasion, while placing digital assets, technology, gold, aviation and shipping on notice. Reuters reported that Washington also imposed sanctions on nearly 60 individuals, entities and vessels. Bessent said US officials had mapped financial channels used by Iran and would coordinate with partners to target revenue they consider illicit.
The announcement amounts to a warning period before broader secondary measures rather than an immediate blanket punishment of Iran's trading partners. Bessent said governments had an opportunity to change course, while stressing that entities laundering money for Tehran could be removed from the US dollar system. The administration did not disclose the length of this period, leaving companies and governments to assess their exposure.
China, Turkey and the United Arab Emirates are among Iran's largest trading partners, according to the Associated Press. China, long the largest buyer of Iranian oil, rejected pressure tactics and said it would protect its legitimate interests. The UAE suspended trade and financial transactions with Iran last week after a reported missile attack, a decision Bessent cited as evidence that US diplomacy was already having an effect.
Iran dismissed the initiative and argued that decades of sanctions had failed to force a change in its policies. Parliamentary Speaker Mohammad Bagher Qalibaf said Iran's partners were not taking the US warnings into account, while Iranian officials threatened consequences for further escalation. Tehran also renewed warnings to ships using the Strait of Hormuz without its permission, adding to concern about energy flows and maritime security.
The measures arrive nearly six months into the US-Israel conflict with Iran, which has disrupted regional shipping and oil supplies. Pakistan's army chief Asim Munir visited Tehran on Monday in a mediation effort, while formal US-Iran talks have been stalled since June. The effectiveness and global cost of Washington's campaign will depend on which foreign banks and companies it targets, how quickly penalties begin, and whether major trading partners comply or retaliate.
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