US expands secondary sanctions targeting Iran’s global business ties

Washington, United States. The Trump administration on Monday announced an expansion of secondary sanctions against entities and countries that maintain business ties with Iran, as it increases economic pressure on Tehran with the war nearing its six-month mark.

Treasury Secretary Scott Bessent said the measures were intended to warn countries to cut commercial ties with Iran or risk having key companies and entities excluded from the dollar-based financial system.

Sanctions measures

At a press conference, Bessent described the initiative as an “economic D-Day” and said the United States was launching an economic campaign against Iran’s financial links worldwide.

“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent said.

The Treasury Department said it had mapped the networks, facilitators and financial channels used by Iran to smuggle oil and evade sanctions. Washington said it would work with US partners to target sources of what it described as Iran’s “illicit revenue.”

Targeted sectors

The department said it had issued determinations against five sectors used by the Iranian government to support its economy: digital assets, technology, gold, aviation and shipping.

It also imposed sanctions on nearly 60 entities, individuals and vessels.

China has been the largest buyer of Iranian oil for several years. Washington has intensified efforts to curb Chinese purchases but has not designated larger Chinese banks that may be facilitating the oil trade.

War and energy prices

Trump’s war with Iran, which has raised energy prices globally, is approaching its sixth month. Heavy fighting has subsided, but diplomatic efforts to end the war have stalled.

Oil and raw-material shipping through the Strait of Hormuz remains blocked, keeping energy prices elevated.

Trump’s approval rating has fallen to 33 per cent, according to the latest Reuters/Ipsos poll. Trump has said the economic costs are necessary to prevent Iran from obtaining a nuclear weapon.

Longstanding restrictions

The United States has maintained sanctions against Iran for decades, targeting oil revenues, aviation, cryptocurrency, procurement of weapons components and other military hardware, as well as funding for businesses controlled by the Islamic Revolutionary Guard Corps.

The sanctions prohibit designated entities from using the dollar-based financial system. Iran has, however, established new front companies, entities and vessel registrations to evade the restrictions.