US widens Iran sanctions, warns trading partners to cut ties
The US announced new sanctions on Iran, targeting 60 entities and warning global partners to sever business ties or face exclusion from the dollar system.
The United States has announced a fresh round of sanctions against Iran, expanding measures aimed at cutting off the Islamic Republic's economic lifeline while deliberately stopping short of the most severe options available.
Treasury Secretary Scott Bessent said other nations must sever business ties with Iran or risk being pushed out of the dollar-based financial system. However, he declined to name specific countries or set a timeline for penalties, saying Washington would give partners time to comply.
"We are giving everyone the opportunity to remedy bad behavior. Why would I want to blow up the global financial system?" Bessent told a news conference.
The Treasury Department imposed sanctions on 60 individuals, entities, and vessels. Notably, the list did not include Chinese financial institutions suspected of facilitating Iran's oil trade, a move analysts say reflects caution ahead of expected talks between US President Donald Trump and Chinese President Xi Jinping.
Bessent insisted that "no one is above the reach of U.S. sanctions" when asked about Chinese banks. Beijing responded by saying sanctions and pressure tactics do not help and that it would protect its interests.
Iranian Economy Minister Ali Madanizadeh said Tehran was fully prepared, calling the measures an "economic terrorist attack." He added, "Our defense is no longer so defensive; the enemies should wait for an attack."
A spokesperson for Iran's Islamic Revolutionary Guard Corps, Brigadier General Hossein Mohebbi, vowed heavy blows to US interests and energy chokepoints if Iran's infrastructure is threatened.
The US action comes nearly six months after American and Israeli strikes on Iran, a conflict that has disrupted shipping, reduced oil flows, and weighed on the global economy. While Iran's conventional military has been degraded and its former Supreme Leader killed, Tehran retains missile and drone capabilities that threaten Gulf neighbors and oil tankers in the Strait of Hormuz.
Oil prices fell more than $2 a barrel on Monday, though investors remain wary of further supply disruptions.
The Treasury said Iran uses five sectors—digital assets, technology, gold, aviation, and shipping—to prop up its economy and that these areas are now on notice for sanctions.
Earlier Monday, Iran warned shipping not to pass through the Strait of Hormuz without its permission, listing 45 ships it said had violated its rules and threatening retaliation for ship-to-ship transfers with them.