Washington: US Treasury Secretary Scott Bessent on Monday unveiled plans for the "economic asphyxiation" of Iran, expanding Washington's secondary sanctions threats and cautioning countries about dire consequences if they do not join the campaign against Tehran.
According to France24.com, the announcement comes six months into a war with Iran that has reached a stalemate, with peace talks stalled and Iran blocking most traffic through the crucial Strait of Hormuz. Bessent described the US initiative as an "economic D-Day" aimed specifically at Iran, though he did not specify any other countries or provide timelines.
"Our objective globally is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone," Bessent stated to journalists. He warned that countries not aligning with US sanctions would "share in the isolation" of Iran, noting that President Donald Trump has been actively reaching out to world leaders to halt interactions with Tehran.
The US Treasury Department indicated that the expanded secondary sanctions would target Iran's digital assets, technology, gold, aviation, and shipping sectors. New sanctions were also imposed on 60 individuals, companies, and vessels allegedly supporting Iran in oil revenue generation, weapons procurement, and cyber operations. These sanctions affect entities worldwide, including those in the United Arab Emirates, Hong Kong, China, Singapore, and Europe.
Bessent emphasized that any entity involved in money laundering for Iran would be removed from the US dollar system. Iran, dismissive of the threat, has been preparing for this situation. Economy Minister Ali Madanizadeh predicted "another defeat" for Washington, asserting that Iran is ready with a two-year plan to manage these events.
In an online post, Deputy Foreign Minister Kazem Gharibabadi characterized the US threats as an admission of military defeat, questioning the need for such a financial offensive if Washington had already achieved its goals. "Is this a victory or an admission of America's defeat?" he asked.
Iran has endured decades of international sanctions, continuing to export millions of barrels of oil primarily to China, and evading sanctions through complex financial networks. Bessent confirmed that no entity, including Chinese banks, is beyond the reach of US sanctions.
The US naval blockade of Iran has reduced its oil exports via the Strait of Hormuz from two million barrels daily pre-war to just 0.4 million by mid-August, according to maritime tracker Kpler. For ordinary Iranians, this standoff is likely to exacerbate economic hardship following years of rampant inflation, which previously incited massive anti-government protests.
The US announcement also suspended sanctions exemptions for payments related to the US educational system involving Iran. Meanwhile, last week, Iranian President Masoud Pezeshkian, deemed a relative moderate, urged for an end to the war from a position of strength, following Supreme Leader Mojtaba Khamenei's appointment of hardliners to key security positions.
On Monday, Pakistan's army chief Asim Munir, a significant mediator in the conflict, visited Iran and met with its president, chief negotiator, and national security head. These meetings occurred after Trump's discussion with Munir, as reported by a US source familiar with the matter. Islamabad played a pivotal role in securing an April ceasefire that ultimately collapsed and is a major trading partner with Iran, potentially exposing it to new sanctions.
Additionally, Oman's foreign minister is expected in Iran on Tuesday as Muscat and Tehran aim to reach an agreement on regulating passage through the Strait of Hormuz.