US Treasury Chief Warns of 'Economic Asphyxiation' in New Iran Sanctions Push

Washington, DC: US Treasury Secretary Scott Bessent has issued a stark warning to nations and financial institutions dealing with Iran, vowing a campaign of "economic asphyxiation" through a new wave of sanctions. Speaking at a press conference on Monday, Bessent declared that no entity is beyond the reach of US penalties.

Bessent stated that any country or organization that "facilitates transactions and is part of the ecosystem that turns Iranian oil into money" will be targeted. He emphasized that the US is using quiet diplomacy to communicate its expectations to nations worldwide, but warned that those who ignore the warnings will face consequences.

"We know who they are, they know who they are," Bessent said. "So, when the hammer of US Treasury actions falls upon them, they will have no one to blame but themselves."

The Treasury Secretary also addressed the delicate trade truce with China, responding to questions about whether Beijing would be spared. He insisted that "no one is above" US sanctions, suggesting that Chinese banks facilitating Iranian transactions could still face action.

Bessent revealed that a "wave of sanctions" is imminent, with a major announcement concerning a financial institution expected by the end of this week. The comments come as Iran's currency hit a record low, trading at 2.02 million to the US dollar, amid nearly five decades of American sanctions.

Experts suggest the US is likely to calibrate its actions carefully regarding China, particularly with Chinese leader Xi Jinping expected to visit the US next month to manage the fraught bilateral relationship.