Washington – Treasury Secretary Scott Bessent told reporters on Monday that the United States is launching a broad “economic onslaught” to further isolate the Islamic Republic of Iran. The new secondary sanctions will target foreign companies and financial institutions that help move Iranian oil, shipping, cryptocurrency, gold and aviation services, with the goal of cutting every economic pipeline that sustains the regime.
Trump Calls on Global Leaders
Secretary Bessent said President Donald Trump is personally reaching out to world leaders, making “specific requests” for them to halt trade with Tehran. He described the effort as “quiet diplomacy,” warning that any entity that continues to facilitate money‑laundering for Iran will be removed from the U.S. dollar system.
Scope of the Sanctions
The announced measures focus on “secondary” countries whose trade and business ties still benefit Iran. In the days before 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 will depend on whether Iran’s largest trading partners – China, India and Russia – view the threats as credible.
“If you’re a country like Russia or China, you see Iran as an ally, and you’re not just going to suddenly stop trading with them – that damages Moscow’s credibility in the eyes of their friends around the world,” said Andrew Gawthrope, a lecturer at the University of Leiden specializing in U.S. foreign policy.
Background and Costs
The United States has imposed direct sanctions on Iran for decades, targeting weapons procurement and other prohibited activities. Iran has often evaded those measures by creating front companies. The current conflict, now six months old, began after the United States and Israel struck Iran to prevent a nuclear weapons capability. Defense Secretary Pete Hegseth estimated the war’s direct cost to the U.S. at $37.5 billion, while Moody’s Analytics chief economist Mark Zandi placed the broader economic impact at up to $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. Mohammad Bagher Ghalibaf, speaker of Iran’s Parliament, wrote on X that Americans “buy nothing but bombast” and that the United States lacks the economic position to further restrict its relations. Deputy Foreign Minister Kazem Gharibabadi questioned whether Bessent’s plan was “an admission of America’s defeat,” while Central Bank head Abdolnaser Hemmati told the semi‑official Tasnim news agency that the new sanctions add no real pressure beyond what has already been imposed.
Domestic Political Context
The sanctions announcement comes as President Trump faces declining approval ratings ahead of the November midterm elections. The war in Iran has become a political liability, contributing to higher gas prices and turbulence in the bond market that has required extraordinary Treasury intervention.
While the United States continues to press its “single greatest financial offensive ever,” as Bessent wrote in a Financial Times op‑ed, experts caution that without cooperation from Iran’s major trade partners, the effectiveness of secondary sanctions may be limited.
Original reporting: NBC6 Miami — read the source article.
