US unveils sweeping sanctions to isolate Iran's economy

The United States has announced a major expansion of secondary sanctions aimed at isolating Iran from the global financial system, a move Treasury Secretary Scott Bessent described as an "economic D-Day."

Speaking at a press conference on Monday, Bessent said the objective is to cut off every economic lifeline that sustains the Iranian regime. The new measures target countries and entities that continue to do business with Tehran, threatening to cut them off from the dollar-based financial system.

"We are launching an economic onslaught against Iran's financial connections around the globe," Bessent said, adding that Washington has mapped the networks, facilitators, and financial channels Iran uses to smuggle oil and evade existing sanctions.

The announcement comes as part of broader US pressure on Iran to halt attacks on shipping in the Gulf and Red Sea, carried out directly and through allied groups. Tehran has said the sanctions will have the opposite effect.

Iran has endured layers of US and international sanctions for decades, which have weakened its economy but have not changed its leadership's behavior.

Bessent specifically addressed China, the largest buyer of Iranian oil in recent years, though a renewed US blockade of Iranian ports in mid-July has already reduced those flows. Asked about Chinese banks, Bessent said, "We want to make clear here today that no one is above the reach of U.S. sanctions."

China's foreign ministry responded that sanctions and pressure tactics are unhelpful and that Beijing will take necessary steps to protect its interests.

Analysts note Washington is cautious about provoking Chinese retaliation, particularly regarding critical mineral exports, ahead of expected talks between President Donald Trump and Chinese President Xi Jinping next month.