US Unveils New Iran Sanctions, Vows to Sever All Economic Lifelines

The United States has announced an expanded sanctions campaign against Iran, with Treasury Secretary Scott Bessent saying Washington's goal is to sever every economic lifeline sustaining the Iranian government until it stands alone. The measures, described as "economic asphyxiation," broaden secondary sanctions that target third-party entities doing business with Tehran.

The announcement comes nearly six months into a conflict that has reached a stalemate, with peace talks stalled and Iran blocking most traffic through the Strait of Hormuz. Bessent said President Donald Trump has been calling world leaders to urge them to stop interactions with Iran, warning that countries not joining the campaign would "share in the isolation" of Tehran.

Speaking to reporters on Monday, Bessent said the expanded sanctions would target Iran's digital assets, technology, gold, aviation and shipping sectors. The Treasury Department also imposed new sanctions on 60 individuals, companies and vessels accused of helping Iran generate oil revenue, procure weapons and conduct cyber operations. Those entities are located in the United Arab Emirates, Hong Kong, China, Singapore and Europe.

Bessent reiterated that any entity facilitating money laundering on behalf of Iran would be removed from the US dollar system. When asked whether Chinese banks could be targeted, he said "no one is above the reach of US sanctions."

Iran has dismissed the threat of additional sanctions. Economy Minister Ali Madanizadeh predicted "another defeat" for Washington, saying the government has a two-year plan to manage these events. "We've been waiting for these plans for a long time," he said.

The country has weathered decades of international sanctions. Before the current conflict, it continued to export millions of barrels of oil, mostly to China, while using complex financial networks to evade restrictions. The US naval blockade has reduced Iran's oil exports through the Strait of Hormuz from two million barrels per day before the war to about 400,000 by mid-August, according to maritime tracker Kpler.

Ali Vaez, an analyst at the International Crisis Group, said Washington is seeking to impose maximum economic pressure through various levers, but Iran "has faced all of these before." He noted that while there is little doubt about Washington's ability to inflict substantial pain, Tehran believes it has a high threshold for absorbing it and could respond with military counterpressure.

US Defense Secretary Pete Hegseth said the focus on economic pressure does not rule out military strikes. "Economic pressure, we know, hurts them the most right now," he said. "But by no means are we foreclosing using kinetic strikes anywhere in the Strait of Hormuz or around Iran."

For ordinary Iranians, the standoff is likely to worsen economic hardship. Years of rampant inflation have already fueled widespread protests in December and January. Sarah Hassanbeigi, a 32-year-old pharmacist in Tehran, said: "I don't think people can really take this much longer."

Last week, Iranian President Masoud Pezeshkian, considered a relative moderate, said Tehran should "bring the war to an end now as we are in a position of power." That followed the appointment of hardliners to key security positions by Supreme Leader Ayatollah Ali Khamenei. On Monday, Pakistan's army chief Asim Munir, a key mediator in the conflict, visited Iran and met separately with Iranian officials.

The new sanctions are part of a broader US strategy to increase pressure on Tehran, though experts note that Iran has shown resilience in the face of past economic isolation. The coming months will determine whether these measures can force a change in Iran's policies or lead to further escalation.