The U.S. Treasury is set to announce, on Monday, a significant expansion of secondary sanctions aimed at entities and nations that maintain commercial relationships with Iran. Treasury Secretary Scott Bessent is expected to detail the new measures at a press conference at 1 p.m. EDT, according to a source familiar with the plan.
The proposed action is intended as a final warning to foreign governments and businesses: continue supporting Iran’s economy and risk exclusion from the dollar‑based financial system. The source, who spoke on condition of anonymity, said the administration wants to force a swift end to the six‑month standoff that has choked the Strait of Hormuz and disrupted Gulf energy exports.
What the expanded sanctions could cover
While the Treasury has not disclosed the specific activities that will trigger the new sanctions, the source indicated that for certain Iranian sectors, any involvement – even through a third‑country intermediary – could be subject to secondary sanctions. The move would add new categories of Iran‑related conduct to the existing sanctions list, making it easier for the United States to target facilitators of prohibited transactions.
Currently, the Treasury issues licenses for limited transactions in Iran, including the import of medicine, medical devices, cultural exchanges, and agricultural products. The expanded sanctions would likely tighten those exemptions and broaden the scope of prohibited behavior.
Impact on foreign banks and Chinese interests
In recent months, the Treasury has sanctioned independent Chinese “teapot” refineries that purchase Iranian oil and has increased pressure on the shadow fleet of tankers moving Iranian crude. The new authority would allow the United States to sanction banks in China and elsewhere that facilitate Iran‑related deals – a step the Trump administration has avoided so far to preserve a delicate trade truce with Beijing.
President Donald Trump and Chinese President Xi Jinping are slated to meet in Washington in late September. New sanctions on Chinese financial institutions could complicate ongoing negotiations on a rare‑earths supply agreement and existing tariff arrangements.
Strategic rationale
Secretary Bessent previously described the current Iran measures as the “toughest sanctions in history,” noting that they complement a naval blockade of Iranian ports and reduce the need for additional kinetic military action. By expanding secondary sanctions, the administration hopes to cut off the remaining financial lifelines that enable Iran to evade existing restrictions.
A senior administration official said the Treasury has mapped Iran’s oil‑smuggling and sanctions‑evasion network and will share that intelligence with countries that have been allowing Iran to bypass U.S. measures. The goal is to pressure those jurisdictions to shut down any tolerated activity.
Broader context
The United States has maintained a comprehensive sanctions regime against Iran for decades, targeting oil revenues, the aviation sector, cryptocurrency transactions, weapons procurement, and entities linked to the Islamic Revolutionary Guard Corps. Despite these efforts, Iran has repeatedly created front companies and re‑registered vessels to skirt restrictions.
Expanding secondary sanctions represents the next phase of the Trump administration’s “economic D‑Day” strategy, aiming to force Iran to alter its behavior without resorting to further military engagement.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
