The Trump administration on Monday (August 24) unveiled a major expansion of its economic pressure campaign against Iran, warning countries and companies that continue doing business with Tehran that they could face secondary sanctions and potentially lose access to the US dollar-based financial system.
US Treasury Secretary Scott Bessent described the move as an “economic D-Day” and said Washington was targeting Iran’s financial connections around the world as the war with Tehran approaches its six-month mark.
“We are launching an economic onslaught against Iran’s financial connections around the globe,” Bessent said at a press conference. “Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone.”
Trump calls world leaders to cut Iran ties
Bessent said President Donald Trump is personally contacting world leaders and making specific requests that they end economic interactions with Iran.
The Treasury secretary said countries would have a finite timeline to shut down activities identified by Washington, including potentially closing Iranian bank branches operating abroad.
Bessent warned that the administration would not tolerate countries remaining in what he called the “gray spaces” of the conflict.
“It’s no longer acceptable to operate in the gray spaces,” he said.
He added: “Let there be no ambiguity as to the position of the United States. An economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power.”
US targets Iran’s global revenue network
The Treasury Department said it has mapped the networks, facilitators and financial channels Iran uses to smuggle oil and evade existing sanctions.
Washington said it would work with its international partners to target sources of what it described as Iran’s “illicit revenue.”
Bessent said the latest measures are designed to block all potential sources of revenue available to Tehran, including oil income.
“We are going to hold everyone accountable, and this is economic asphyxiation of this regime,” he said.
The Treasury also identified five critical sectors that it said Iran uses to support its economy: digital assets, technology, gold, aviation and shipping.
‘No one is above’ US sanctions
Bessent warned that entities facilitating financial activity for Iran could be cut off from the US financial system.
“Any entity that facilitates money laundering on behalf of Iran will be removed from the US dollar system,” he said.
Asked whether Chinese banks dealing with Iran could also face sanctions, Bessent said “no one is above the reach of US sanctions.”
China, Turkey and the United Arab Emirates are among Iran’s largest trading partners, potentially placing businesses and financial institutions in those countries under greater scrutiny.
Bessent said countries that refuse to join Washington’s campaign would “share in the isolation” imposed on Tehran.
Strait of Hormuz remains key pressure point
The announcement comes as the conflict between the US and Iran remains deadlocked, with peace efforts stalled and Iran continuing to restrict traffic through the strategically important Strait of Hormuz.
The waterway is a major global energy route, and disruptions have contributed to pressure on oil markets and the wider global economy.
Washington’s latest strategy therefore seeks to increase the economic cost for Tehran while also pressuring countries that maintain commercial and financial links with Iran.
The United States and Israel launched their major bombing campaign against Iran on February 28, triggering Iranian retaliation across the region. Nearly six months into the conflict, the two sides are yet to reach a lasting settlement.
