The Trump administration announced an expansion of sanctions on entities and countries maintaining business ties with Iran, intensifying economic pressure on Tehran amid the ongoing conflict. Treasury Secretary Scott Bessent referred to the move as an “economic D-Day,” warning countries to cut business connections with Iran to avoid being excluded from the dollar-based financial system.
The U.S. Treasury Department revealed efforts to disrupt Iran’s global financial networks used for oil smuggling and sanctions evasion. Sanctions were imposed on sectors such as digital assets, technology, gold, aviation, and shipping, with nearly 60 entities, individuals, and vessels targeted. China, a major buyer of Iranian oil, faced increased scrutiny, although larger Chinese banks facilitating trade were not yet designated.
Iran responded to the sanctions threat with warnings of potential military retaliation and further oil export reductions. Iranian Finance Minister Ali Madanizadeh stated readiness for U.S. sanctions, emphasizing Iran’s preparedness to counter economic threats. Iran’s Revolutionary Guard Corps spokesperson, Brig-Gen. Hossein Mohebbi, vowed significant retaliation against U.S. interests and energy chokepoints if Iran’s infrastructure faced jeopardy.
As the U.S.-Iran conflict approached six months, global energy prices surged, and diplomatic efforts to resolve the crisis stalled. Trump’s approval ratings declined, with only 33% of Americans approving his performance, attributing the economic costs to preventing Iran from obtaining nuclear weapons. Decades-long U.S. sanctions targeted Iran’s oil revenues, aviation sector, cryptocurrency activities, weapons procurement, and IRGC-controlled enterprises, restricting their access to the dollar financial system. Despite the sanctions, Iran has managed to establish new fronts to circumvent restrictions.