Washington – Treasury Secretary Scott Bessent announced Monday that the United States is preparing a new series of secondary sanctions aimed at companies and financial institutions that help Iran conduct trade in sectors such as shipping, oil, cryptocurrency, gold and aviation. Bessent described the effort as an “economic D‑Day” intended to cut off every financial pipeline that supports the Iranian regime.
Trump’s diplomatic push
President Donald Trump has been making phone calls to foreign leaders, according to Bessent, with “specific requests” for them to cease all trade with Iran. The administration says the outreach is part of a “quiet diplomacy” campaign designed to warn potential partners of the consequences of continuing business with Tehran.
Scope of the sanctions
The upcoming measures will target international entities that facilitate Iranian trade, including those involved in money‑laundering activities. Any organization found to be assisting Iran could be removed from the U.S. dollar system, Bessent said, adding that no one is “above the reach of U.S. sanctions.” He also mentioned a “cure period” during which nations can end the targeted relationships before further penalties take effect.
U.S. financial offensive
In an op‑ed for the Financial Times, Bessent promised what he called “the single greatest financial offensive ever” against Iran. He wrote that the goal is to isolate the regime until it stands alone, and that any country that continues to partner with Iran would also face financial isolation.
International reaction
Ahead of the announcement, the United Arab Emirates, a close U.S. ally, said it was ending all trade relations with Iran. Analysts note that the ultimate impact of the sanctions will depend on how Iran’s major trading partners—China, India and Russia—respond. University of Leiden lecturer Andrew Gawthrope warned that countries like Russia or China are unlikely to abruptly halt trade, suggesting limited leverage for the United States.
War costs and domestic implications
The sanctions come as the United States and Israel continue a six‑month conflict with Iran that began over concerns about a nuclear weapons program. Defense Secretary Pete Hegseth estimated the war’s direct cost to the United States at $37.5 billion, while Moody’s Analytics chief economist Mark Zandi projected total economic impact could reach $150 billion, translating to roughly $1,200 in higher energy and grocery costs for the average American household.
Iranian response
Iranian officials dismissed the U.S. threats. Speaker of Iran’s Parliament Mohammad Bagher Ghalibaf posted on X that Americans “do not buy their bombast” and that Iran’s trading partners are not swayed by the statements. Deputy Foreign Minister Kazem Gharibabadi questioned whether Bessent’s plan was an admission of defeat, while Central Bank head Abdolnaser Hemmati said the new sanctions do not add any new restrictions.
Domestic unrest in Iran
In Tehran’s Grand Bazaar, a historic commercial hub, police presence was heightened amid concerns that rising gas prices and long lines at stations could spark protests. Iranian police chief Ahmadreza Radan accused the United States of trying to incite unrest over economic hardships.
While the United States hopes the sanctions will pressure Tehran, the effectiveness of the strategy remains uncertain, especially as major global partners weigh the economic costs of breaking ties with Iran.
Original reporting: NBC Connecticut — read the source article.
